MIRA
INFORM REPORT
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Report Date : |
21.05.2007 |
IDENTIFICATION DETAILS
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Name : |
LIFE FITNESS ASIA PACIFIC LTD. |
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Registered Office : |
Rm 2610, 26/F, |
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Country : |
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Date of Incorporation : |
2-7-1996 |
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Com. Reg. No.: |
555493 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading of fitness equipment. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Up To USD500, 000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
LIFE FITNESS ASIA PACIFIC LTD.
RM 2610, 26/F,
TEL : 852 25756262
FAX : 852 25756894
EXECUTIVE SUMMARY
INCORPORATION DATE :
2-7-1996
REGISTRATION NO. :
555493
REGISTERED LEGAL FORM :
PRIVATE LIMITED CO.
CHIEF EXECUTIVE : MAK CHIN TO SIMON
(DIRECTOR)
STAFF STRENGTH :
20
AUTHORIZED CAPITAL
: HK$10,000 = 10,000 SHARES @ HK$1.-
PAID-UP CAPITAL : HK$10,000
BUSINESS LINE :
TRADING OF FITNESS EQUIPMENT
TURNOVER :
US$5,665M (GROUP, YEAR ENDED 31-12-2006)
EQUITIES :
N/A (YEAR ENDED 31-12-2006)
PAYMENT :
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
HKD 7.82187 = USD1 AS OF 2007-05-21
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M - million
HKD –
SC is a private limited company registered under
incorporation file no. 555493 on 2-7-1996.
SC's shareholders & directors are shown to be as
follows:
Shareholders (as at 2-7-2006) Number
of shares held
- Brunswick International
Holdings, Inc. 9,999
- Brunswick Corporation 1
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10,000
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Directors (as at 2-7-2006)
- Drickey Steven Louis / 201764549
- Harper Eugene Eldridge / R129780(4)
- Mak Chin To Simon / D188026(9)
- Megna Jay Gerald / 027711056
The above registration information is based on SC's annual
return filed at Companies Registry within the last 2 years.
No material change or amendment regarding SC has been traced
& noted within last 2 years.
SC is a subsidiary of Brunswick International Holdings, Inc.
whose partial information is as follows:
Year established : 1989
Registered/business
address :
Business
line : As an
investment holding co.
No. of employees : NA
Civil litigation & winding-up petition : None in our
database
Turnover : NA
The said co. is, in turn, a subsidiary of Brunswick Corp., a
publicly listed co. on NYSE with stock ticker "BC", whose partial
information is as follows:
Year established : 1907
Registered/business
address : Same as the above said co.
Business
line : As a holding
co. with diverse interests in manufacturing & supply of leisure
products. Items available include boats,
fitness equipment, bowling products & billiards tables.
No. of employees : 28,000 (group, as at
31-12-2006)
Civil litigation & winding-up petition records : None in
our database
Turnover : US$5,665M (group, year ended
31-12-2006)
Partial financial data of the said company:
Items Fiscal
yr 31-12-2006 Fiscal yr 31-12-2005
Current assets : US$2,078M US$2,235M
Current
liabilities : US$2,372M US$2,387M
Fixed
assets & non-current assets : US$1,293M US$1,305M
Tangible
worth/(net deficit) : US$3,157M US$3,317M
Turnover
: US$5,665M US$5,607M
Net
income/(net loss) : US$134M US$385M
Mak Chin To Simon, director:
- In his early 50's
- Embarked upon his career to present field as an executive
trainee in his mid 20's
Currently active in SC's day-to-day operations & is
responsible for its management.
Registered residential address: Flat F, 20/F, Blk 1,
Sunshine Grove,
Credit
history check : This refers to a check
of our database whether the said person has been involved in any of
the
following records stored by us within the last 6 years:
Civil
litigation as defendants : None in our database
Bankruptcy/winding-up
petitions : None in our database
Delinquent
payment records : None in our database
Debt collection records : No overdue amount owed by the said person was
placed to us for collection
Megna Jay Gerald, director:
- He is by American nationality
- Embarked upon his career to present field as an executive
trainee in his mid 20's
- Also currently vice president of commercial sale of Life
Fitness Inc.
Currently residing in
Registered residential address:
Credit
history check : This refers to a check
of our database whether the said person has been involved in any of
the
following records stored by us within the last 6 years:
Civil
litigation as defendants : None in our database
Bankruptcy/winding-up
petitions : None in our database
Delinquent
payment records : None in our database
Debt collection records : No overdue amount owed by the said person was
placed to us for collection
Ownership background appraisal:
Rating : 1 Obtained scores : 83 (see explanatory notes
below)
Keys : 1 : scores 81-100 : Excellent
2
: scores 61-80 : Good
3
: scores 46-60 : Average
4
: scores 21-45 : Fair
5
: scores 01-20 : Poor
The rating indicates the personal financial &
operational strength of SC's major principals.
It is calculated from a composite of scores obtained from the following
5 factors which carry equal weight in our analysis:
Personal financial strength, credit history & trade
reputation, business experience & track record, market connection and
management skill.
Upon a current contact, Ms. Shum, SC's administrator,
declined forwarding any financial information on the ground that it is the
company's policy not releasing any data to a third party without the benefit of
knowing the identity of the inquiring party.
As per current co. search, total amount of indebtedness of
SC in respect of all mortgages and charges which are required to be registered
with Companies Registry as at 2-7-2006 was NA.
Banking relations are maintained principally with: HSBC.
This section will contain the civil litigations &
winding-up petitions filed against SC for the last 6 years (as stored in our
database), and the mortgage/charge records filed by SC for the last 2
years. In
Civil litigation/winding-up
petitions : None in our
database.
Mortgage/charge record(s) : None filed since its incorporation date.
Overall payment appraisal :
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet determined
The appraisal serves as a reference to reveal SC's payments habits
and ability to pay. It is based on the 3
weighed factors: Trade payment
experience (through current enquiry with SC's suppliers), our delinquent
payment records and our debt collection record concerning SC.
Trade
payment experience : SC
did not provide any name of trade/service suppliers and we have no other
sources
to conduct the enquiry at present.
Delinquent payment record : None
in our database.
Debt collection record : No
overdue amount owed by SC was placed to us for collection within the last 6
years.
Business categories :
SC is engaged in trading of fitness equipment.
Items available include treadmills, lifecycle exercise
bikes, elliptical cross-trainers & stairclimbers.
A portion is sold under its own brand(s) "Life
Fitness", "Hammer Strength" & "Parabody".
Principal purchases :
Major types of sourcing :
Merchandise
Local--type of suppliers :
Nil
Buying terms :
Nil
Overseas--supplying countries :
Buying terms :
Intercompany account basis
Principal market :
Local--type of customers :
The corporate & commercial sectors; walk-in customers & fitness centres
Selling terms :
COD, cash & credit card payment
Overseas--buying countries :
PR China
Selling terms :
L/C & T/T
Total number of employees : 20.
Location : Maintaining its office at the heading business
address which occupies a gross area of 2,000 square feet at a commercial
building in a commercial district.
Condition inside the premises
during our visit :
Office/factory layout : Good.
SC's clients include:
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- Physical Fitness
SC also maintains a showroom in Central, HK.
SC is not known to have any subsidiary at
present.
SC is considered a well-maintained business with solid base
to
meet moderate amount of credit dealings.
-- Asset Tracing --
Upon our current investigation, our database & sources
consulted indicate that SC was not involved in any property transaction (both
purchase & disposal) in
Brunswick Corp.'s share price movements are as follows:
- Closed on 18-5-2007: US$34.26
- Year high / low: US$36.92/US$27.08
- Price earning ratio: 15.742
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)