MIRA INFORM REPORT

 

 

Report Date :

29.10.2013

 

IDENTIFICATION DETAILS

 

Name :

LIFE FITNESS ASIA PACIFIC LTD.

 

 

Registered Office :

Room 2610, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

02.07.1996

 

 

Com. Reg. No.:

20128109

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of All kinds of health equipment

 

 

No. of Employees :

12.

 

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

 

Status :

Satisfactory

Payment Behaviour :

Slow but Correct

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Hong Kong

A2

A2

 

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 levies excise duties on only four commodities, namely: 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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. 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 exports 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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.

 

Source : CIA

 


company name

 

LIFE FITNESS ASIA PACIFIC LTD.

 

 

ADDRESS

 

Room 2610, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-2575 6262

 

FAX:                 852-2575 6894

 

E-MAIL:            Arthur.chan@lifefitness.com

gene.harper@lifefitness.com

 

 

MANAGEMENT

 

Managing Director:         Mr. Eugene Eldridge Harper

 

 

SUMMARY

 

Incorporated on:             2nd July, 1996.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

Issued:                          HK$10,000.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Group Net Sales:-          (Year ended 31-12-2012)

US$3,717.6 million  (Whole Group)

US$   635.9 million  (Life Fitness Division)

 

Employees:                   12.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


Company name and address

 

LIFE FITNESS ASIA PACIFIC LTD.

 

 

ADDRESS

 

Registered Head Office:-

Room 2610, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-

Brunswick International Holdings Inc., USA.

 

Ultimate Holding Company:-

Brunswick Corporation, USA.

 

Associated/Affiliated Companies:-

Brunswick Group of Companies

Attwood Corporation, USA.

Boston Whaler Inc., USA.

Brunswick Bowling & Billiards Corporation, USA.

Brunswick Bowling & Billiards Ltda., Brazil.

Brunswick Centres Inc., Canada.

Brunswick Commercial & Government Products Inc., USA.

Brunswick Compañías de México S.A. de C.V., Mexico.

Brunswick Europe Holdings Ltd, UK.

Brunswick European Treasury Center SprL, Belgium.

Brunswick Family Boat Co. Inc., USA.

Brunswick Financial Services Corporation, USA.

Brunswick Hungary Manufacturing and Trading Ltd. Liability Co., Hungary.

Brunswick Importacao e Comercio do Brasil Ltda., Brazil.

Brunswick Industria de Embarcacoes do Brasil Ltda., Brazil.

Brunswick International GmbH, Germany.

Brunswick International Ltd., USA.

Brunswick Italia Holding S.r.l., Italy.

Brunswick Leisure Boat Co. LLC., USA.

Brunswick Marine – EMEA Operations LDA., Portugal.

Brunswick Marine in EMEA Inc., USA.

Brunswick Marine in Finland and the Baltic States Oy, Finland.

Brunswick Marine in France S.A., France.

Brunswick Marine in Italia S.p.A., Italy.

Brunswick Marine in Poland Sp. z o.o, Poland.

Brunswick Marine in Sweden A.B., Sweden.

Brunswick Product Protection Corporation, USA.

Brunswick Singapore Holdings Pte. Ltd., Singapore.

Brunswick Trading (Suzhou) Co. Ltd., China.

Land ‘N’ Sea Corporation, USA.

Land ‘N’ Sea Distributing Inc., USA.

Leiserv Inc., USA.

Life Fitness (Atlantic) B.V., Netherlands.

Life Fitness (U.K.) Ltd., UK.

Life Fitness Europe GmbH., Germany.

Life Fitness Inc., USA.

Life Fitness International Sales Inc., USA.

Life Fitness Japan Ltd., Japan.

Life Fitness Shared Services Center B.V., Netherlands.

Lund Boat Co., USA.

Marine Power International Limited Filial av utenlandsk foretak, Norway.

Marine Power International Ltd., USA.

Marine Power International Pty Ltd., USA.

Marine Power New Zealand Ltd., USA.

Mercury Marine do Brasil Industria e Comercio Ltda., Brazil.

Mercury Marine Ltd. / Mercury Marine Limitee, Canada.

Mercury Marine Sdn Bhd., Malaysis.

Mercury Marine Singapore Pte Ltd., Singapore.

Mercury Marine Technology Suzhou Co. Ltd., China.

Normalduns B.V., Netherlands.

Princecraft Boats Inc. / Bateaux Princecraft Inc., Canada.

Protokon Manufacturing Developing and Trading Limited Liability Company, Hungary.

Sea Ray Boats Inc., USA.

etc.

 

 

BUSINESS REGISTRATION NUMBER 

 

20128109

 

 

COMPANY FILE NUMBER

 

0555493

 

 

MANAGEMENT

 

Managing Director:         Mr. Eugene Eldridge Harper

 

 

CAPITAL

 

Nominal Share Capital:   HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 02-07-2013)

Name

 

No. of shares

Brunswick International Holdings Inc.

1 North Field Court, Lake Forest, IL 60045-4811, USA.

 

9,999

Brunswick Corporation

1 North Field Court, Lake Forest, IL 60045-4811, USA.

 

1

 

 

––––––

 

Total:

10,000

=====

 

 

DIRECTORS

 

(As per registry dated 20-09-2013)

Name

(Nationality)

 

Address

Franciscus Hendricus Lambertus VAN DE VEN

Hurst 10, 5682 HX Best, Netherlands.

Steven Louis DRICKEY

126 South Elmwood Avenue, Oak Park, Illinois 60302, USA.

 

Eugene Eldridge HARPER

Flat 6B, Glenealy Mansion, 7 Glenealy Road, Central, Hong Kong.

 

 

SECRETARY 

 

Eugene Eldridge HARPER  (As per registry dated 02-07-2013)

 

 

HISTORY

 

The subject was incorporated on 2nd July, 1996 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Skyton Co. Ltd., name changed to the present style on 22nd August, 1996.

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

 

 

OPERATIONS

 

Activities:                                  Importer, Exporter and Wholesaler.

 

Lines:                                       All kinds of health equipment.

 

Employees:                               12.

 

Commodities Imported:               Europe, US, etc.

 

Markets:                                   Hong Kong, China, other Asian countries.

 

Group Net Sales:-

FY

Whole Group

Life Fitness Division

Year ended 31-12-2008

US$4,546.4 million*

US$639.5 million

Year ended 31-12-2009

US$2,729.5 million*

US$496.8 million

Year ended 31-12-2010

US$3,338.0 million*

US$541.9 million

Year ended 31-12-2011

US$3,670.0 million*

US$635.2 million

Year ended 31-12-2012

US$3,717.6 million

US$635.6 million

 

Note:    * Restated

 

Terms/Sales:                              L/C, T/T, etc.

 

Terms/Buying:                           As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:               HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:                 HK$10,000.00

 

Segment Result (Life Fitness Division):-

US$  52.2 million  (Year ended 31-12-2008)

US$  33.5 million  (Year ended 31-12-2009)

US$  59.6 million  (Year ended 31-12-2010)

US$  93.4 million  (Year ended 31-12-2011)

US$103.1 million  (Year ended 31-12-2012)

 

Group Net Earnings/(Loss):         (US$788.1 million)          (Year ended 31-12-2008)

(US$586.2 million)          (Year ended 31-12-2009)

(US$110.6 million)          (Year ended 31-12-2010)

US$  71.9 million           (Year ended 31-12-2011)

US$  50.0 million           (Year ended 31-12-2012)

 

Profit or Loss:                            Fitness Division made profits in the past years.

 

Condition:                                  Keeping in a satisfactory manner.

 

Facilities:                                  Making rather active use of general banking facilities.

 

Payment:                                  Met on time.

 

Banker:                                     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

                       

Standing:                                  Normal.

 

 

GENERAL

 

Life Fitness Asia Pacific Ltd. is a subsidiary of Brunswick International Holdings Inc. which is a US-based firm.  The ultimate holding company of the subject is Brunswick Corporation [Brunswick] which is also a US-based firm.  Brunswick is a listed firm in the United States, and is the holding company of the Brunswick Group.  Its shares are traded in New York and Chicago Stock Exchanges.

The subject is trading in the same commodities as its holding company.

Today, Brunswick is the market leader in the marine, fitness, bowling and billiards industries; and its participation in these industries is deliberate.

Brunswick’s fitness products include both cardiovascular and strength training equipment for the commercial and consumer markets.  Brunswick’s bowling products include capital equipment, aftermarket and consumer goods. It also sells a complete line of billiards tables and other gaming tables and accessories.  In addition, Brunswick owns and operates Brunswick bowling entertainment centres in the United States and other countries.

Headquartered in Lake Forest, Illinois, Brunswick endeavours to install “Genuine Ingenuity™” in all its leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Teignbridge propellers; MotoTron electronic controls; Northstar marine electronics; Navman marine and GPS‑based products; IDS dealer management systems; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston Whaler, Crestliner, HarrisKayot, Hatteras, Lowe, Lund, Maxum, Meridian, Ornvik, Palmetto, Princecraft, Quicksilver, Savage, Sea Boss, Sea Pro, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Attwood marine parts and accessories; Land “N” Sea and Kellogg Marine parts and accessories distributors; Life Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling centres, equipment and consumer products; Brunswick billiards tables; and Valley‑Dynamo pool, Air Hockey and foosball tables.

Brunswick’s Fitness segment is comprised of its Life Fitness division (Life Fitness), which designs, manufactures and markets a full line of reliable, high-quality cardiovascular fitness equipment (including treadmills, total body cross-trainers, stair climbers and stationary exercise bicycles) and strength-training equipment under the Life Fitness and Hammer Strength brands.

Brunswick is a manufacturer of commercial fitness equipment and a leading manufacturer of high-quality consumer fitness equipment.  Life Fitness’ commercial sales customers include health clubs, fitness facilities operated by professional sports teams, the military, governmental agencies, corporations, hotels, schools and universities.  Commercial sales are made to customers through Life Fitness’ direct sales force, domestic dealers, and international distributors.  Consumer products are available at specialty retailers, select mass merchants, sporting goods stores, through international distributors, and on the Life Fitness Web site.

The Fitness segment’s principal manufacturing facilities are located in Illinois, Kentucky, Minnesota and Hungary, with third party contract manufacturing utilized in China and Taiwan.  Life Fitness distributes its products worldwide from regional warehouses and production facilities.  Demand for Life Fitness products is seasonal, with sales generally highest in the fourth quarter of the year.

The subject is one of the divisions of Brunswick.  The Life Fitness Division is the global leader in strength training equipment.  In FY 2012, its net sales were US$635.6 million, increased by 0.06% as compared with US$635.2 million in FY 2011.  Operating earnings of this Division were US$103.1 million, increased by 10.4% as compared with US$93.4 million in FY 2011.

Based in Schiller Park, Illinois, this Division markets and manufactures Life Fitness and Hammer Strength equipment serving health clubs, professional athletic teams, university athletic departments and the military.

The net sales of the Brunswick Group in FY 2012 were US$3,717.6 million (FY 2011: US$3,670.0 million).  Its net earnings was US$50.0 million in the year, decreased by 30.5% compared with US$71.9 million in FY 2011.

The business of the Group has been recovering from the financial crisis of Europe.

The number of employees worldwide was 16,177 as at end of 31st December, 2012 (2011: 15,356).

The subject is fully supported by Brunswick.

On the whole, consider it good for normal business engagements.

 

 

REMARKS

 

Court case record:-

Action Date

Case No.

Plaintiff

Defendant

Cause

Amount

26-02-2001

D3873

Exact Software Asia Sdn. Bhd., Malaysia

Life Fitness Asia Pacific Ltd.

Service Rendered

US$44,853

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.99.49

Euro

1

Rs.84.88

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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