MIRA INFORM REPORT

 

 

Report No. :

333013

Report Date :

27.07.2015

 

IDENTIFICATION DETAILS

 

Name :

IKEA TRADING (HONG KONG) LTD.

 

 

Registered Office :

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

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

23.11.1979

 

 

Com. Reg. No.:

06353411

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Buying Office; Finance and Administration of Furniture, rugs, carpets, textiles, lamps, bulbs, lighting fixtures & fittings, light dimmers, solar lamps, green lightings, LED lightings.

 

 

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

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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

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

 

Credit recommendation

 

Good for credit of US$500,000 or less

 

 

Company name and address

 

IKEA TRADING (HONG KONG) LTD.

 

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

                         Hong Kong.

 

PHONE:                  852-2833 2837,  2891 4788

 

FAX:                       852-2834 5723,  2891 9200

 

E-MAIL:                  enquiry@ikea.com.hk

ids@ikea.com.hk

 

MANAGEMENT:

 

Managing Director:  Mr. Leung Tai Yin, Ben

 

 

SUMMARY

 

Incorporated on:                        23rd November, 1979.

 

Organization:                              Private Limited Company.

 

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.

 

 

ADDRESS

 

Registered Head Office:-

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

 

China Representative Offices:  Shenzhen, Qingdao, Shanghai, Wuhan

 

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.

 

 

BUSINESS REGISTRATION NUMBER

 

06353411

 

 

COMPANY FILE NUMBER

 

0075500

 

 

MANAGEMENT

 

Director & Regional Purchase Manager, Asia Pacific:  Mr. Lars Thorsen

Managing Director:  Mr. Leung Tai Yin, Ben

 

 

ISSUED SHARE CAPITAL

 

HK$1,000,100.00

 

 

SHAREHOLDERS

(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

======

 

 

DIRECTORS

 

(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.

 

 

SECRETARY

 

(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

 

 

HISTORY

 

The subject was incorporated on 23rd November, 1979 as a private limited liability company under the Hong Kong Companies Ordinance.

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

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Buying Office; Finance and Administration.

 

Lines:                           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.

 

 

MEMBERSHIP

 

Swedish Chamber of Commerce in Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

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.

 

 

GENERAL

 

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

 

 

REMARKS

 

Court case:-

Date

Plaintiff

Defendant

Cause

Amount

Dec. 1994

Jebsen & Co. Ltd.

IKEA Trading (Hong Kong) Ltd.

Amount due

HK$167,808

Aug. 1996

Ansen Electronics Co. operated by Shine Profit Development Ltd.

IKEA Trading (Hong Kong) Ltd.

Amount due

US$495,591


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.89

UK Pound

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%)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.