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Report No. : |
333013 |
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Report Date : |
27.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
IKEA TRADING (HONG KONG) LTD. |
|
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|
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Registered Office : |
Room 1601-1608,
16/F., Tai Yau Building, 181 Johnston Road, Wanchai |
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|
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Country : |
Hong Kong |
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|
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Date of Incorporation : |
23.11.1979 |
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Com. Reg. No.: |
06353411 |
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|
|
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Legal Form : |
Private Limited
Company |
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Line of Business : |
Importer, Exporter and Buying Office; Finance and Administration of Furniture, rugs, carpets, textiles, lamps, bulbs, lighting fixtures & fittings, light dimmers, solar lamps, green lightings, LED lightings. |
|
|
|
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No. of Employee : |
27. (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 |
|
Maximum Credit Limit : |
US$ 500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
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 |
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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 |
Good for credit of US$500,000 or less
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
MANAGEMENT:
Managing Director: Mr. Leung Tai Yin, Ben
Incorporated on: 23rd
November, 1979.
Organization: Private Limited Company.
Issued Share Capital:
HK$1,000,100.00
Business Category: Buying Office
of furniture and furnishings; Finance and Administration.
Group Revenue: €29,293 million (Year ended 31-08-2014)
Employees:
27. (Office Staff)
Main Dealing Bankers: BNP Paribas, Hong Kong
Branch.
Credit Agricole Corporate &
Investment Bank, Hong Kong Branch.
Banking Relation: Good.
Registered
Head Office:-
Room 1601-1608, 16/F., Tai Yau Building, 181
Johnston Road, Wanchai, Hong Kong.
China Representative Offices: Shenzhen, Qingdao, Shanghai, Wuhan
Holding
Company:-
INGKA Pro Holding B.V., Holland.
Ultimate
Holding Company:-
INGKA Holding Europe B.V., Holland.
Associated/Affiliated Companies:-
IKEA
Group of Companies
IKEA Asia Pacific Pte. Ltd., Singapore.
IKEA Belgium, Belgium.
IKEA Damansara, Malaysia.
IKEA Food Services AB, Sweden.
IKEA Humlebaek, Denmark.
IKEA Industry AB, Sweden.
IKEA Industry Trading AB, Sweden.
IKEA International A/S, Denmark.
IKEA IT AB, Sweden.
IKEA of Sweden AB, Sweden.
IKEA Supply AG, Switzerland.
IKEA Trading (I) Pvt. Ltd., India.
IKEA Trading Far East Ltd., Hong Kong.
Inter IKEA Centre Group A/S, Denmark.
Inter IKEA Finance S.A., Luxembourg.
Inter IKEA Holding S.A., Luxembourg.
Inter IKEA Holding Services S.A., Belgium.
Inter IKEA Systems A/B, Sweden.
Inter IKEA Systems B.V., The Netherlands.
Inter IKEA Systems Holding B.V., The
Netherlands.
Swedspan Holding B.V., The Netherlands.
Swedspan International s.r.o., Slovak
Republic.
Swedwood International AB, Sweden.
Vastint Holding B.V., The Netherlands.
06353411
0075500
Director & Regional Purchase Manager,
Asia Pacific: Mr. Lars Thorsen
Managing Director: Mr. Leung Tai Yin, Ben
HK$1,000,100.00
(As per registry dated 23-11-2014)
|
Name |
|
No. of shares |
|
INGKA Holding Europe B.V. Bargelaan
20, 2333 CT Leiden, Holland. |
|
10,001 |
|
INGKA Pro Holding B.V. Bargelaan 20, 2333 CT
Leiden, Holland. |
|
90,009 |
|
|
|
––––––– |
|
|
Total: |
100,010 ====== |
(As per registry dated 09-05-2015)
|
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. |
|
Raj-inder Singh RAI |
House G, L’Harmonie, 3 Stanely Mound Road, Hong Kong. |
|
Erik Johan Magnus
HOLMQUIST |
Am Muhlebach 12, CH-4104 Oberwil, Switzerland. |
(As per registry dated 23-11-2014)
|
Name |
Address |
Co. No. |
|
Sekots Secretarial Services
Ltd. |
16/F. - 19/F.,
Prince’s Building, 10 Chater Road, Central, Hong Kong. |
0028739 |
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.
Activities: Importer, Exporter and
Buying Office; Finance and Administration.
Lines: Furniture,
rugs, carpets, textiles, lamps, bulbs, lighting fixtures & fittings, light
dimmers, solar lamps, green lightings, LED lightings, etc.
Employees: 27. (Office Staff)
Commodities Imported: Africa, Australasia, Central & South America, China,
Europe, Hong Kong, Japan, Korea, Middle East, North America, Other Asian
Countries, Taiwan
Markets: Hong Kong, China
Group Revenue: €23,539 million (Year ended 31-08-2010)
€25,173 million (Year ended
31-08-2011)
€27,628 million (Year ended
31-08-2012)
€28,506 million (Year ended
31-08-2013)
€29,293 million (Year ended
31-08-2014)
Terms/Sales: COD or as per
contracted.
Terms/Buying: Various
terms.
Swedish Chamber of
Commerce in Hong Kong, Hong Kong.
Issued Share
Capital: HK$1,000,100.00
Group Net Income: €2,688 million (Year ended 31-08-2010)
€2,966 million (Year ended
31-08-2011)
€3,202 million (Year ended
31-08-2012)
€3,317 million (Year ended
31-08-2013)
€3,329 million (Year ended
31-08-2014)
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)
€42,020 million (As at
31-08-2013)
€44,667 million (As at
31-08-2014)
Profit or Loss: Traded at profitable angle.
Condition: Business
is active.
Facilities: Making
active use of general banking facilities.
Payment: So
far good.
Commercial
Morality: Very 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.
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% of IKEA
HK. 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, Netherlands.
Currently, INGKA
owns the industrial group Swedwood, which sources the manufacturing of 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 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. All products in the IKEA range are distinguished
by the label “Design and Quality, IKEA of Sweden.”
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.
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.
To support its expansion plans in Asia, it opened a new factory in
Nantong. The factory will supply IKEA
stores mainly in China with board-based furnishing products.
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.
The IKEA Group net
income amounted to EUR 3.3 billion for the financial year 2014. Market conditions continued to improve with
strong performance in China & North America, and an upward trend in
Europe. There were 716 million visits to
the IKEA Group stores & more than 1.5 billion visited IKEA.com.
For the year ended
31st August, 2014, together with the rental income from the shopping centre
business, total revenue of the Group amounted to EUR 29.3 billion (+2.8%)
[2013: EUR 28.5 billion]. The IKEA Group
gained market share in almost all markets and entered a new country –
Croatia. The largest markets in terms of
sales were Germany, the United States, France, Russia and the United Kingdom.
The IKEA Group,
with 147,000 co-workers, has 318 stores in 28 markets and operations in 43
countries. E-commerce is offered in 13
markets. There are more than 40 stores
run by franchisees outside the IKEA Group.
A Sweden director
of IKEA HK Mr. Enar Leif Gunnar Johansson resigned on 9th May, 2015.
The history of IKEA
HK is over 35 years and seven months.
IKEA HK is fully
supported by IKEA.
On the whole, in
view of the parentage of IKEA HK, consider it good for normal business
engagements.
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.63.89 |
|
|
1 |
Rs.99.10 |
|
Euro |
1 |
Rs.70.12 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ANK |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.