ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconFacebook IconIcon FacebookGoogle Plus IconLayer 1InstagramCreated with Sketch.Linkedin IconIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintRSS IconIcon SearchSite TitleTitle ChevronTwitter IconIcon TwitterYoutube Icon
Distribution Services

Li & Fung Ltd.

  • 3.84 HKD
  • -0.08
  • -2.04%
  • Hong Kong
    Apr 19, 2018
  • Ticker
    HKG(494)
  • Prev. close
    3.92
  • Market cap (HKD)
    33,202.23M
  • Market cap (USD)
    4,230.41M
  • Shares
    8,469.95M

Company Background

Li & Fung is one of the world's leading consumer products sourcing and logistics companies. Based in Hong Kong, with total assets of more than $8.4 billion, the company engages in businesses ranging from product design and raw-material sourcing to production management and quality control. Li & Fung supplies a wide range of consumer products, including designer apparel, home furnishings, handbags, accessories, sporting goods and footwear.

The company's logistics business manages worldwide supply chains with partner companies, providing in-country logistics and international freight forwarding services. Its network spans mainland China, Japan, South Korea, the Middle East, India and Southeast Asia, and comprises over 1.8 million sq. meters of logistics space.

Li & Fung spun off its brand management unit in 2014. The newly formed company, Global Brands Group Holding, has licenses on hundreds of trademarks and distributes goods to major Western retailers. The spinoff was intended to allow Li & Fung to focus on its core operations of product sourcing and logistics.

The company was established by Fung Pak-liu and Li To-ming in 1906. Honorary Chairman Victor Fung and Chairman William Fung, the third generation of the Fung family, have led the company since the 1980s. The Fung family holds a 28% stake in the company.

Business Summary

Li & Fung Ltd. is an investment holding company, which engages in the trading, logistics and distribution of consumer products. It operates its business through the following segments: Trading Network and Logistics Network. The Trading Network segment provides on the global sourcing services through multiple channels, such as buying agent, trading-as-principal for private label merchandise, and on-shore wholesale business. The Logistics Network segment offers logistics solutions and freight forwarding services. The company was founded in 1906 and is headquartered in Hong Kong.

Financial Highlights

Dec 2017 HKDUSD
Revenue105,469.60M13,534.20M
Gross Profit9,962.98M1,278.48M
Operating income2,279.23M292.47M
Income before tax2,138.89M274.46M
Net income1,328.03M170.41M
EBITDA2,830.11M363.16M
Diluted EPS0.200.02
Dividends Per Share0.130.01
Total Assets50,953.18M6,518.00M
Total liabilities37,233.76M4,762.99M
Total equity13,662.65M1,747.74M
Operating cash flow1,522.32M195.34M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 147,574.09M 149,576.17M 145,987.42M 114,505.72M 105,469.60M
Gross Profit 16,434.92M 16,094.60M 15,948.45M 10,909.72M 9,962.98M
Operating income 4,915.58M 3,934.10M 3,489.01M 2,138.68M 2,279.23M
Income before tax 5,533.03M 4,850.01M 3,916.63M 1,765.26M 2,138.89M
Net income 4,745.58M 4,182.86M 3,264.18M 1,242.06M 1,328.03M
EBITDA 5,772.40M 4,825.76M 4,345.33M 2,704.45M 2,830.11M
Diluted EPS 0.67 0.40 0.38 0.20 0.20
Dividends Per Share 0.49 0.41 0.28 0.23 0.13
Total Assets 96,654.00M 65,738.03M 61,482.70M 59,736.29M 50,953.18M
Total liabilities 57,523.27M 45,520.53M 42,051.79M 41,901.75M 37,233.76M
Total equity 39,052.82M 20,150.85M 19,397.64M 17,842.94M 13,662.65M
Operating cash flow 5,961.45M 4,267.51M 3,351.01M 1,333.64M 1,522.32M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 19,025.51M 19,288.49M 18,830.83M 14,751.22M 13,534.20M
Gross Profit 2,118.81M 2,075.46M 2,057.18M 1,405.44M 1,278.48M
Operating income 633.72M 507.32M 450.04M 275.51M 292.47M
Income before tax 713.32M 625.43M 505.20M 227.41M 274.46M
Net income 611.80M 539.39M 421.04M 160.00M 170.41M
EBITDA 744.18M 622.30M 560.50M 348.40M 363.16M
Diluted EPS 0.08 0.05 0.05 0.02 0.02
Dividends Per Share 0.06 0.05 0.03 0.02 0.01
Total Assets 12,465.45M 8,477.02M 7,933.09M 7,704.77M 6,518.00M
Total liabilities 7,418.76M 5,869.94M 5,425.93M 5,404.48M 4,762.99M
Total equity 5,036.63M 2,598.48M 2,502.87M 2,301.37M 1,747.74M
Operating cash flow 768.56M 550.31M 432.24M 171.80M 195.34M

Valuation Measures

Dec 2017
PER21.17
ROA2.39%
ROE8.43%
Operating margin2.16%
Profit margin1.25%

Key executives

  • Group Chief Executive Officer & Executive Director: Spencer Theodore Fung
  • Chief Financial Officer: Sung Lai Lam
  • Group Chief Technology Officer: Manuel Carlos Fernandez
  • Group Chief Compliance & Risk Management Officer: Chi Wai Yeung
  • President-LF Asia Direct: Oi Wai Mak Mok

Shareholders

  • FUNG FAMILY (27.7%)
  • Capital Research & Management Co. (World Investors) (7.9%)
  • First State Investment Management (UK) Ltd. (5.3%)
  • Silchester International Investors LLP (4.9%)
  • Capital Research & Management Co. (Global Investors) (3.2%)
  • FUNG KWOK LUN (3.0%)
  • FUNG KWOK KING (2.4%)
  • First State Investments (Singapore) (2.3%)
  • The Vanguard Group, Inc. (1.6%)
  • BlackRock Fund Advisors (1.2%)

Contact Details

  • Website:http://www.lifung.com
  • Address: 11th Floor, LiFung Tower, 888 Cheung Sha Wan Road, Hong Kong, Hong Kong
  • Phone: +852.2300.2300

Related Companies

  • Modium Konfeksiyon Sanayi ve Ticaret AS
  • Hanson Im-und Export GmbH
  • Li & Fung Trading (Italia) SRL
  • Li & Fung Mexico SA de CV
  • Li & Fung Agencia de Compras em Portugal Ltda.
  • Li & Fung (Nicaragua) SA
  • Li & Fung (Morocco) SARL
  • Li & Fung (Honduras) Ltd.
  • Li & Fung (Guatemala) SA
  • LFL Management (Thailand) Ltd.
  • LF Beauty (Thailand) Ltd.
  • Chuan Jui Chuan Logistics Co. Ltd.
  • BGS Ltd.
  • Whalen Ltd.
  • PT LF Services Indonesia
  • PT LF Beauty Manufacturing Indonesia
  • PT Direct Sourcing Indonesia
  • PT IDS Logistics Indonesia
  • PT Lifung Indonesia
  • Texnorte II - Industrias Texteis Ltda.
  • Chuan Jui Fu Logistics Co., Ltd.
  • HTL Fashion Hazir Giyim Sanayi ve Ticaret Ltd. Sti.
  • Li & Fung Mumessillik Pazarlama Ltd. Sti.
  • Whalen LLC
  • Li & Fung (Vietnam) Ltd.
  • Miles Fashion Group France EURL
  • Peter Black Overseas Holdings Ltd.
  • Ningbo Zhicheng Customs Brokerage Co., Ltd.
  • Covo Design (Dongguan) Co., Ltd.
  • Crimzon Rose Accessories (Shenzhen) Co., Ltd.

Competitors

  • DCC Plc
  • Differential Brands Group Inc.
  • Dorel Industries Inc. Class B
Last Updated on 19 Apr, 2018

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

3 months for $9

Get unlimited access
NAR site on phone, device, tablet

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media