MIRA INFORM REPORT

 

 

Report No. :

335580

Report Date :

12.08.2015

 

IDENTIFICATION DETAILS

 

Name :

PEDDER GROUP LTD.

 

 

Registered Office :

27/F. - 30/F., One Island South, 2 Heung Yip Road, Wong Chuk Hang,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

13.03.2002

 

 

Com. Reg. No.:

32532324

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Department Store Operator of Ladies shoes, handbags, accessories, textile products.

 

 

No. of Employees :

1,200 (Group Employees)

 

 

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 :

Regular

 

 

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 


Company Name and Address

 

PEDDER  GROUP  LTD.

 

ADDRESS:       27/F. - 30/F., One Island South, 2 Heung Yip Road, Wong Chuk Hang, Hong Kong.

 

PHONE:            852-2118 6088,  2118 2202

 

FAX:                 852-2118 1133,  2118 2021

 

E-MAIL:            recruitment@peddergroup.com

 

MANAGEMENT:

 

Managing Director:  Mr. Tsui Yiu Cheung

 

 

SUMMARY

 

Incorporated on:            13th March, 2002.

 

Organization:                   Private Limited Company.

 

Issued Share Capital:     HK$2.00

 

Business Category:       Department Store Operator.

 

Group Employees:        1,200.

 

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

 

Banking Relation:  Very Good.

 

 

ADDRESS

 

Registered Head Office:-

27/F. - 30/F., One Island South, 2 Heung Yip Road, Wong Chuk Hang, Hong Kong.

 

Holding Company:-

Lane Crawford (Hong Kong) Ltd., Hong Kong.

 

Intermediate Holding Company:-

LCJG Ltd., Hong Kong.

 

Ultimate Holding Company:-

Lane Crawford (BVI) Ltd., British Virgin Islands.

Subsidiary/Associated/Affiliated Companies:-

Lane Crawford Joyce Group of Companies

Chesterland Group Ltd., British Virgin Islands.

Christian Louboutin Asia Ltd., Hong Kong.

CM Crawford Ltd., Hong Kong.

GGR Asia Ltd., Hong Kong.

Golden Tiger Tarantula Ltd., Hong Kong.

ImagineX (Beijing) Commercial Co. Ltd., China.

ImagineX (Shanghai) Commercial Co. Ltd., China.

ImagineX Beauty Ltd., Hong Kong.

ImagineX BG Ltd., Hong Kong.

ImagineX DK (HK) Ltd., Hong Kong.

ImagineX Group Singapore Pte. Ltd., Singapore.

ImagineX IBM Ltd., Hong Kong.

ImagineX IMB Ltd., Hong Kong.

ImagineX ISA Ltd., Hong Kong.

ImagineX Macao Co. Ltd., Macao.

ImagineX Management Co. Ltd., Hong Kong.

ImagineX MJD Ltd., Hong Kong.

ImagineX Overseas Ltd., Hong Kong.

ImagineX PL Ltd., Hong Kong.

ImagineX PS Ltd., Hong Kong.

ImagineX PSM Ltd., Hong Kong.

ImagineX SS Ltd., Hong Kong.

ImagineX TM Ltd., Hong Kong.

ImgineX AO Ltd., Hong Kong.

Jade Creations Ltd., Hong Kong.  (Dormant)

Jennisis Ltd., Hong Kong.

Joyce Boutique Holdings Ltd., Bermuda/Hong Kong.

Joyce Boutique Ltd., Hong Kong.

Lane Crawford (China) Ltd., British Virgin Islands.

Lane Crawford (Macau) Ltd., Macau.

Lane Crawford (Singapore) Pte. Ltd., Singapore.

Lane Crawford International Ltd., Bermuda.

LCJG Distribution Co. Ltd., Hong Kong.

Marc Jacobs Hong Kong Distribution Co. Ltd., Hong Kong.

OIS Realty Ltd., Hong Kong.

OIS Realty Ltd., Hong Kong.

On Pedder Ltd., Hong Kong.

Pedder Group Ltd., Hong Kong.

Pedder Red Ltd., Hong Kong.

Pedder Vision Ltd., Hong Kong.

Walton Brown JC HK Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

32532324

 

COMPANY FILE NUMBER 

 

0789006

 

MANAGEMENT

 

Managing Director:  Mr. Tsui Yiu Cheung

 

 

ISSUED SHARE CAPITAL

 

HK$2.00

 

 

SHAREHOLDER  

 

(As per registry dated 13-03-2015)

Name

 

No. of shares

Lane Crawford (Hong Kong) Ltd., Hong Kong.

 

2

=

 

 

DIRECTORS  

 

(As per registry dated 13-03-2015)

Name

(Nationality)

 

Address

CHAN Kai Cheuk, Stephen

Flat B, 13/F., Prosperous Height, 62 Conduit Road, Hong Kong.

TSUI Yiu Cheung

Flat C, 7/F., Conduit Tower, 20 Conduit Road, Hong Kong.

MOK Wai Man

Flat D, 11/F., Prosperous Height, 62 Conduit Road, Hong Kong.

 

 

SECRETARY 

 

(As per registry dated 13-03-2015)

Name

Address

CHAN Lap Yee

27/F., One Island South, 2 Heung Yip Road, Wong Chuk Hang, Hong Kong.

 

 

 

 

HISTORY

 

The subject was incorporated on 13th March, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Envision Holdings Ltd., name changed to Pedder Brown Ltd. on 17th April, 2002, and further to the present style on 14th June, 2002.

Formerly the subject’s registered address was located at 25/F., Tower One, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong, moved to 23/F., Wheelock House, 20 Pedder Street, Central, Hong Kong in July 2011.  Its head office was formerly located at Room 2707-2712, 27/F., Tower One, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong, moved to combine with its registered office at the present address with effect from 15th July, 2011.

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

 

 

OPERATIONS

 

Activities:                      Department Store Operator.

 

Lines:                           Ladies shoes, handbags, accessories, textile products.

 

Group Employees:        1,200.

 

Commodities Imported: Italy, France, other European countries, Japan, US.

 

Markets:                       Hong Kong, China, other Asian countries.

 

Terms/Sales:                 CAD, COD or as per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$2.00

 

Profit or Loss:               Business is profitable.

 

Condition:                     Keeping in a good and active condition.

 

Facilities:                      Making very active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Very Good.

 

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

 

Standing:                      Very Good.

 

 

GENERAL

 

Pedder Group Ltd. is a wholly-owned subsidiary of Lane Crawford (Hong Kong) Ltd. [Lane Crawford] which is a Hong Kong-registered firm located at the same operating address.  Lane Crawford is one of the significant department stores in Hong Kong.

The intermediate holding company of the subject is LCJG Ltd., also a Hong Kong-registered company.

The registered address of the subject is also the home store and showroom of the subject.

Formerly the subject was a wholly-owned subsidiary of Chesterland Group Ltd. [Chesterland] which was a BVI-registered firm.  The old name of Chesterland was The Lane Crawford Joyce Group (BVI) Ltd.  Chesterland transferred its shares to Lane Crawford on 1st April, 2010.

However, the subject still belongs to the Lane Crawford Joyce Group.

 

At present, Pedder Group includes the following firms:-

On Pedder Ltd.;

Pedder Group Ltd. (the subject);

Pedder Red Ltd.; &

Pedder Vision Ltd.

Pedder Group is the leading retailer of high end footwear, ladies shoes, handbags and accessories in the Greater China region and Southeast Asia.  It manages Lane Crawford shoes and accessories as well as designer footwear boutique “On Pedder”, mid-market footwear multiple “Pedder Red” and several franchises.

Through the Lane Crawford department stores and its own boutiques, “On Pedder” and “Pedder Red”, Pedder Group retails high-end accessories and footwear in the Greater China and Southeast Asia.  Pedder Group has upscale “On Pedder” boutiques in Hong Kong, Shanghai, Taipei, Singapore and Jakarta and opened On Pedder stores in Beijing and Bangkok in late 2007.

Based in Hong Kong, Pedder Group is an independently managed subsidiary of the Lane Crawford Joyce Group, a leading partner for international brands in the Asia Pacific region.

With 50 points of sale across more than 200,000 square feet of retail across Hong Kong, Shanghai, Beijing, Shenyang, Chengdu, Chongqing, Singapore and Jakarta, Pedder Group works with 300 international brands and ranks in the top 10 global shoe and accessories retailers.

One of the significant shops of the Pedder Group is in Cityplaza, Taikoo Shing, Hong Kong.

 

Pedder Group operates four businesses:

 

·         The women’s and men’s shoes and accessories business for Lane Crawford on and offline, and women’s shoes and accessories under the Shoespace banner in LAB Concept.

 

·         On Pedder; a designer retail concept with freestanding stores and branded boutiques in Joyce.

 

·         Pedder Red, a contemporary fashion shoe and accessories brand, the majority of which is its own development, distributing through its freestanding stores and Lane Crawford.

·         Mono-brand stores through partnership for Christian Louboutin and Stuart Weitzman.

 

Pedder Group carries the following brands: “Alaοa”, “Alexander Mcqueen”, “Alexander Wang”, “Ann Demeulemeester”, “Anndra Neen”, “Balmain”, “Assad Mounser”, “Butler & Wilson”, “Cιline”, “Chloι”, “Chouette”, “Christian Louboutin”, “Christopher Kane”, “Comme Des Garηon”, “Dita”, “Dolce & Gabbana”, “Elizabeth And James”, “Erickson Beamon”, “Falconiere”, “Fallon”, “Florian”, “Galtiscopio”, “Gem Kingdom”, “Givenchy”, “Giuseppe Zanotti Design”, “Helene Zubeldia”, “Janis Savitt”, “House Of Lavande”, “Jennifer Behr”, “Jimmy Choo”, “Junya Watanabe”, “Kenneth Jay Lane”, “Les Chiffoniers”, “Linda Farrow Collaborations”, “Lanvin”, “Lulu Frost”, “Maison Michel”, “Marc Jacobs”, “Miu Miu”, “Marni”, “Nicholas Kirkwood”, “Nina Ricci”, “Opening Ceremony”, “Pamela Love”, “Pedro Garcia”, “3.1 Phillip Lim”, “Pierre Hardy”, “Repetto”, “Rick Owens”, “Rodarte”, “Sergio Rossi”, “Sigerson Morrison”, “Stella Mccartney”, “Stephen Jones”, “Stephen Webster”, “Tom Binns”, “Tory Burch”, “Undercover”, “Valentino”, “Vera Wang”, “Vionnet”, “Yves Saint Laurent”, “Zagliani”.

Pedder Group is part of The Lane Crawford Joyce Group, Asia’s premier fashion retail and brand management group, which also includes iconic, luxury department store Lane Crawford, fashion boutique Joyce and leading retail, brand management and distribution company ImagineX Group.

According to the subject, On Pedder has been cooperating with a famous designer Tsao & McKown Architects PC (owned and operated by Mr. Calvin Tsao) to design its retailing shops in Hong Kong and Beijing, China.

The director of the subject Mr. Tsui Yiu Cheung is also a director of the Wheelock Group.

Besides its operations in Hong Kong and China, the subject has expanded its business to Macau in recent years.  The new Macau retailing shop is located at Shop 2848, Level 2, The Shoppes at Four Seasons, Cotai, Macau.

The Lane Crawford Joyce Group is comprised of Lane Crawford, Joyce Group and Pedder Group.

The Lane Crawford Joyce Group is the Hong Kong SAR’s premier multi-label specialty retailers; ImagineX; and LCHL Distribution Company.  Their portfolio of brands under franchise and distribution in Greater China (Hong Kong, China, Taiwan and Macau) includes “Marc Jacobs”, “Marni”, “Hugo Boss”, “Versace”, “Coach”, “BCBG” and others.  LCHL is the abbreviation of Lane Crawford Holdings Ltd.

The LCHL is representing “Juicy Couture” clothing brand through a network of distribution, retailing and franchising.  The brand will be made available in China, Taiwan, Hong Kong, Macau, Singapore, Thailand, Malaysia and Indonesia.  The Lane Crawford Joyce Group will work closely with Juicy Couture to position and expand the brand’s presence in Asia.

These openings come as Lane Crawford itself is closing its three branded department stores in China.

Now Lane Crawford has had several designers’ boutiques and specialty retailing shops.

With an annual revenue of about US$150 to 200 million, Pedder Group also serves as the gateway into China for such designers as Jimmy Choo, Anya Hindmarch, Giuseppe Zanotti and Stuart Weitzman.

The Lane Crawford Group’s associate Joyce Boutique Holdings Ltd., a firm registered in Bermuda, is a public listed firm in Hong Kong.

Today, the focus of the Lane Crawford Joyce Group has shifted from department store to specialty store, Lane Crawford is also in the business of anticipating its customers’ needs and providing them with merchandise they cannot get elsewhere.

Lane Crawford’s stores offer a wide selection of international brands in womenswear, menswear, shoes and accessories, lingerie, jewellery, cosmetics, and home and lifestyle throughout its stores in Hong Kong and Beijing.

Lane Crawford has expanded its business in the Hong Kong Island in the Queensway Plaza shopping mall.  The tender of a seven-year tenancy of Queensway Plaza in Admiralty was awarded to Lane Crawford.  Now, this new firm is in operation.  It is predicted that the revenues of Lane Crawford will further improve in the years ahead.

The followings are the current stores of Lane Crawford:-

1.     IFC Mall, Central, Hong Kong.

2.     Times Square, Causeway Bay, Hong Kong.

3.     Canton Road, Tsim Sha Tsui, Kowloon.

4.     Seasons Place, Xicheng District, Beijing, China.

5.     Yintai Centre, Chaoyang District, Beijing, China.

6.     Times Square, Shanghai.

7.     Chengdu IFS, Chengdu, China.

8.     Pacific Place home store, Pacific Place Mall, Admiralty, Hong Kong.

9.     One Island South home store and showroom, One Island South, Wong Chuk Hang, Hong Kong.

10.  LaneCrawford.com, online store.

Lane Crawford is part of The Lane Crawford Joyce Group, Asia’s premier fashion and brand management group, including multi-brand retailers JOYCE and The Pedder Group, and management and distribution arm, ImagineX.

The Lane Crawford Joyce Group operates more than 550 points of sale across Greater China and South East Asia.

The history of Lane Crawford is over 160 years in Hong Kong.

For the financial year ending 31st March, 2014, Lane Crawford’s revenue was about US$770 million and was up to US$775 million in FY 2015.

The subject is fully supported by Lane Crawford and its associates.

Since the subject belongs to the Lane Crawford Group which is a leading department store in Hong Kong, on the whole, consider it good for normal business engagements.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.17

UK Pound

1

Rs.99.85

Euro

1

Rs.70.36

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TRU

 

               

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.