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MIRA INFORM REPORT
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Report No. : |
486946 |
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Report Date : |
25.01.2018 |
IDENTIFICATION DETAILS
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Name : |
COCA-COLA FAR EAST LIMITED |
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Registered Office : |
18/F., Lincoln House, Taikoo Place, 979 King’s Road,
Quarry Bay |
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Country : |
Hong Kong |
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Date of Incorporation : |
19.10.1979 |
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Com. Reg. No.: |
06323218 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Producing and Marketing of All Kinds of Coca-Cola Soft Drinks |
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No. of Employees : |
150.
(Including associates) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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, which took effect in 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.
Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.
Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities.
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Source
: CIA |
Company
name and address
COCA-COLA FAR
EAST LIMITED
ADDRESS: 18/F., Lincoln House, Taikoo Place, 979
King’s Road, Quarry Bay, Hong Kong.
PHONE: 852-2599 1333
FAX: 852-2506 1425
E-MAIL: apang@apac.ko.com
MANAGEMENT:
Managing Dorector: Mr. Lee Yueh Fang
SUMMARY
Incorporated on: 19th
October, 1979.
Organization:
Private
Limited Company.
Issued Share Capital: US$5,000.00
Business Category: Non-alcoholic beverages producing and marketing.
Group Net Operating Revenues: US$41,863 million (Year ended 31-12-2016)
Employees:
150. (Including associates)
Main Dealing Banker: Deutsche Bank AG, Hong Kong Branch.
Banking Relation: Good.
ADDRESS
Registered Head Office:-
18/F., Lincoln House, Taikoo Place, 979
King’s Road, Quarry Bay, Hong Kong.
Mailing Address:
G.P.O. Box 916, Hong Kong.
China Factories:-
Anhui (Hefei), Beijing, Chongqing, Fujian
(Xiamen), Gansu (Lanzhou), Guangdong (Dongguan, Guangzhou, Huizhou, Zhanjiang
and Zhuhai), Guangxi Zizhiqu (Nanning), Heilongjiang (Harbin), Henan
(Zhengzhou), Hubei (Wuhan), Hunan (Changsha), Jiangsu (Nanjing), Jilin
(Changchun), Liaoning (Dalian and Shenyang), Shaanxi (Xi’an), Shandong
(Qingdao), Shanghai, Shanxi (Taiyuan), Sichuan (Chengdu), Tianjin, Yunnan
(Kunming), Zhejiang (Hangzhou), etc.
Holding Company:-
The Coca-Cola Export Corporation, US.
Ultimate Holding Company:-
The Coca-Cola Company, US.
Sister & Associated Companies:-
Coca-Cola Group of Companies
ACCBC Holding Company, Georgia.
Atlantic Industries, Cayman Islands.
Atlantic Manufacturing, Cayman Islands.
Barlan Inc., US.
BCI Coca-Cola Bottling Co. of Los Angeles,
US.
Beverage Brands S.R.L., Peru.
Beverage Services Ltd., U.K.
Caribbean Refrescos Inc., US.
CCHBC Grouping Inc., US.
Coca-Cola (China) Investment Ltd., China.
Coca-Cola (Japan) Co. Ltd., Japan.
Coca-Cola Africa (Pty) Ltd., South Africa.
Coca-Cola Beverages (Shanghai) Co. Ltd.,
China.
Coca-Cola Beverages Asia Holdings SARL,
Luxembourg.
Coca-Cola Beverages Vietnam Ltd., Vietnam.
Coca-Cola China Industries Ltd., China.
Coca-Cola de Chile S.A., Chile.
Coca-Cola GmbH, Germany.
Coca-Cola Holdings (Overseas) Ltd., US.
Coca-Cola Holdings (UK) Ltd.,U.K.
Coca-Cola Holdings Africa Ltd., U.K.
Coca-Cola India Private Ltd., India.
Coca-Cola Indochina Pte. Ltd., Singapore.
Coca-Cola Industrias Ltda., Brazil.
Coca-Cola Industrias Ltda., Costa Rica.
Coca-Cola Midi SAS, France.
Coca-Cola Oasis LLC, U.S.
Coca-Cola Overseas Parent Ltd., US.
Coca-Cola Refreshments Canada Co., Canada.
Coca-Cola Refreshments USA Inc., US.
Coca-Cola Reinsurance Services Designated
Activity Company, Ireland.
Coca-Cola South Asia (India) Holdings Ltd.,
Hong Kong.
Coca-Cola South Asia Holdings Inc., U.S.
Coca-Cola South Pacific Pty. Ltd., Australia.
Conco Ltd., Cayman Islands.
Corporacion Inca Kola Peru S.R.L., Peru.
Dulux CBAI 2003 BV, The Netherlands.
Energy Brands Inc., US.
European Refreshments, Ireland.
Fresh Trading Ltd., U.K.
Great Plains Coca-Cola Bottling Co., US.
Hindustan Coca-Cola Beverages Pvt. Ltd.,
India.
Hindustan Coca-Cola Holdings Pvt. Ltd.,
India.
Hindustan Coca-Cola Overseas Holdings Pte.
Ltd., Singapore.
Luxembourg CB 2002 S.a.r.l., Luxembourg.
Middle Eastern Refreshemnt Holdings Ltd.,
U.A.E.
Middle Eastern Refreshment Ltd., U.A.E.
Pacific Refreshments Pte. Ltd., Singapore.
Recofarma Industria do Amazonas Ltda.,
Brazil.
Red Life Reinsurance Ltd., Bermuda.
Red Re Captive Insurance Co. Inc., Gerogia.
Refreshment Product Services Inc.,U.S.
SA Coca-Cola Services NV, Belgium.
Servicios Integrados de Administracion y Alta
Gerencia S.A. de C.V., Mexico.
Servicios y Productos Para Bebidas
Refrescantes S.R.L., Argentina.
The Coca-Cola Trading Company LLC, U.S.
The Inmex Corporation, US.
Varoise de Concentres S.A.S., France.
etc.
BUSINESS
REGISTRATION NUMBER
06323218
COMPANY
FILE NUMBER
0074234
MANAGEMENT
President of Asia Pacific Group: Mr. John Murphy
CFO of Asia Pacific Group: Mr. Wadih Khayat
Managing Dorector: Mr. Lee Yueh Fang
ISSUED
SHARE CAPITAL
US$5,000.00
SHAREHOLDER
(As per registry dated 19-10-2017)
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Name |
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No. of shares |
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The Coca-Cola Export Corporation One Coca-Cola Plaza, NW Atlanta, Georgia 30313,
US. |
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5,000 ==== |
DIRECTORS
(As per registry dated 19-10-2017)
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Name (Nationality) |
Address |
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Amit Kumar TIBREWAL |
261 Tanglin Road, Singapore 247968. |
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Lee Yueh Fang |
One Coca-Cola Plaza, NW, Nat 1964, Atlanta,
GA 30313, U.S. |
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Wadih KHAYAT |
75A Grange Road, Singapore 249612. |
SECRETARY
(As per registry dated 19-10-2017)
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Name |
Address |
Co. No. |
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Wilgrist Nominees Ltd. |
Room 601, 6/F., Prince’s Building,
Chater Road, Central, Hong Kong. |
0017249 |
HISTORY
The subject was incorporated on 19th October,
1979 as a private limited liability company under the Hong Kong Companies
Ordinance.
Formerly the subject was located at 38/F.,
Shell Tower, Times Square, 1 Matheson Street, Causeway Bay,
Hong Kong, moved to the present address in December 2006.
The subject changed its directors in October
2017.
Apart from these, neither material change nor
amendment has been ever traced and noted.
OPERATIONS
Activities: Producing
and Marketing.
Lines: All
kinds of Coca-Cola soft drinks.
Brands Carried:-
Coca-Cola, Georgia, Dasani, Ice Dew, Diet
Coke/Coca-Cola Light, Powerade, Simply, I LOHAS, Coca-Cola Zero, Del Valle,
Glacéau Vitaminwater, Ayataka, Fanta, Schweppes, Gold Peak, Sprite, Aquarius,
FUZE TEA, Minute Maid, Minute Maid Pulpy, Glacéau Smartwater.
Employees: 150. (Including associates)
Commodities Imported: Mainly imported from US.
Markets: Hong
Kong, Macau and China.
Group Net Operating Revenues: US$48,017 million (Year ended 31-12-2012)
US$46,854 million (Year ended 31-12-2013)
US$45,998 million (Year ended 31-12-2014)
US$44,294 million (Year ended 31-12-2015)
US$41,863 million (Year ended 31-12-2016)
Terms/Sales:
As per contracted.
Terms/Buying:
As per contracted.
FINANCIAL
INFORMATION
Issued Share Capital: US$5,000.00
Group Net Income Attributable to Shareowners:
US$9,019 million (Year ended 31-12-2012)
US$8,548 million (Year ended 31-12-2013)
US$7,098 million (Year ended 31-12-2014)
US$7,351 million (Year ended 31-12-2015)
US$6,527 million (Year ended 31-12-2016)
Group Total Assets: US$86,174 million (As at
31-12-2012)
US$90,055 million (As at 31-12-2013)
US$92,023 million (As at 31-12-2014)
US$89,996 million (As at 31-12-2015)
US$87,270 million (As at 31-12-2016)
Profit or Loss: Business is profitable.
Condition:
Keeping in an
active and good condition.
Facilities:
Making active
use of general banking facilities.
Payment:
Regular.
Commercial Morality: Very
good.
Banker:
Deutsche
Bank AG, Hong Kong Branch.
Standing:
Very Good.
GENERAL
Coca-Cola Far East Limited is a wholly-owned subsidiary of The
Coca-Cola Export Corporation, a US-based firm which is owned by The Coca-Cola
Company [Coca-Cola], also a US-registered company.
Coca-Cola is a listed firm in the United States.
The subject is the division office of Coca-Cola in Asia and the
Asia Pacific Region besides China, Hong Kong, Taiwan and Macau. The business of China, Hong Kong, Taiwan and
Macau is handled by Coca-Cola China Ltd. which is also located at the same
address.
The subject works closely with Swire Coca-Cola HK Ltd., which is a
local licensed bottler and is responsible for the production, sales, and
marketing of Coca-Cola products in Hong Kong.
Coca-Cola, incorporated in September 1919, is a beverage
company. Coca-Cola owns or licenses and
markets more than 500 non-alcoholic beverage brands, primarily sparkling
beverages but also a variety of still beverages, such as waters, enhanced
waters, juices and juice drinks, ready-to-drink teas and coffees, and energy
and sports drinks, etc.
Coca-Cola’s segments include Eurasia and Africa, Europe, Latin
America, North America, Pacific, Bottling Investments and Corporate.
The Coca-Cola Company is the world’s largest beverage
company. It owns or license and market
more than 500 non-alcoholic beverage brands, primarily sparkling beverages but
also a variety of still beverages such as waters, enhanced waters, juices and
juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It owns and markets four of the world’s top
five non-alcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and
Sprite. Finished beverage products
bearing its trademarks, sold in the United States since 1886, are now sold in
more than 200 countries.
It makes its branded beverage products available to consumers
throughout the world through its network of Company-owned or -controlled
bottling and distribution operations as well as independent bottling partners,
distributors, wholesalers and retailers — the world’s largest beverage
distribution system. Beverages bearing trademarks owned by or licensed to us
account for more than 1.9 billion of the approximately 58 billion servings of
all beverages consumed worldwide every day.
Coca-Cola has been expanding into China for over eight decades.
Since opening its Beijing bottling plant in 1981, the Coca-Cola
system has spread across the country by way of its 35 bottling plants. Today, Coca-Cola has become China’s leading
beverage manufacturer.
Coca-Cola makes its branded beverage products available to
consumers in more than 200 countries through its network of Company-owned or
-controlled bottling and distribution operations, independent bottling
partners, distributors, wholesalers and retailers — the world’s largest
beverage distribution system. Consumers
enjoy finished beverage products bearing trademarks owned by or licensed to it
at a rate of more than 1.9 billion servings each day.
The Coca-Cola system sold 29.3 billion, 29.2 billion and 28.6
billion unit cases of its products in 2016, 2015 and 2014, respectively. Sparkling beverages represented 72 percent,
73 percent and 73 percent of its worldwide unit case volume for 2016, 2015 and
2014, respectively. Trademark Coca-Cola
accounted for 45 percent, 46 percent and 46 percent of its worldwide unit case
volume for 2016, 2015 and 2014, respectively.
For the year ended 31st December, 2016, the net operating revenues
of the Coca-Cola Group amounted to US$41.9 billion (2015: US$44.3 billion), decreased
by 5.4% as compared with previous years, while its net income for the year was
US$6.5 billion (2015: US$7.4 billion), decreased by 12.2% as compared with
previous years.
As of 31st December, 2016 and 2015, the Company had approximately
100,300 and 123,200 employees, respectively, of which approximately 2,900 and
3,300, respectively, were employed by consolidated variable interest entities
("VIEs").
The subject is fully supported by its parent which is of great
renown. The history of the subject in
Hong Kong is over 38 years and three months.
On the whole, consider it good for normal business engagements.
REMARK
Brief
personal profile of the President of the
Asia Pacific Group:-
Mr. John Murphy, 55, is President of the Asia Pacific Group. Mr. Murphy joined the Company in 1988 as
an International Internal Auditor. In
1991, he moved to Coca-Cola Japan and served as Executive Assistant to the
Chief Financial Officer. Mr. Murphy
served in various finance, planning and operations roles with expanded
responsibilities at Coca-Cola Japan and subsequently worked for F&N
Coca-Cola Ltd., the Coca-Cola bottling partner in Singapore. He re-joined the Company in 1996 as Region
Manager in Indonesia. From March 2000 to
November 2000, Mr. Murphy served as Vice President of Business Systems in
Coca-Cola North America, and from December 2000 to May 2003, he served as
Executive Vice President and Chief Financial Officer of Coca-Cola Japan. From
June 2003 to May 2005, he served as Deputy President of Coca-Cola Japan and in
June 2005, he was appointed Vice President of Strategic Planning of the
Company, a position he held until he became President of the Latin Centre
business unit in October 2008. Mr.
Murphy was appointed President of the South Latin business unit in January 2013
and served in that role until his appointment to his current position effective
1st August, 2016.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.64 |
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|
1 |
INR 89.32 |
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Euro |
1 |
INR 78.45 |
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HKD |
1 |
INR 8.12 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
PRA |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.