MIRA INFORM REPORT

Report Date :

08.07.2014

IDENTIFICATION DETAILS

Name :	CABEN ASIA PACIFIC LTD.
Registered Office :	c/o Tricor Services Ltd. Level 54, Hopewell Centre, 183 Queen’s Road East
Country :	Hong Kong
Date of Incorporation :	03.07.2006
Com. Reg. No.:	36909620
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of all kinds of baby accessories, garments, toys, cosmetics
No. of Employees	20

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 :	No complaints
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 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Hong Kong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
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 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% of total system deposits in Hong Kong by the end of 2013. 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 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies

Source : CIA

Company name and address

CABEN ASIA PACIFIC LTD.

ADDRESS: 8/F. & 9/F., TAL Building, 49 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 852-2957 5500, 2736 9880

FAX: 852-2375 4411, 2730 8888

E-MAIL: goldoni@caben.com.hk

fabrizio.goldoni@artsana.com

MANAGEMENT

Managing Director: Mr. Francesco Ronga

SUMMARY

Incorporated on: 3rd July, 2006.

Organization: Private Limited Company.

Capital: Nominal: HK$23,400,000.00

Issued: HK$23,400,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 20.

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

Banking Relation: Satisfactory.

ADDRESS

Registered Office:-

c/o Tricor Services Ltd.

Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.

Head Office:-

8/F. & 9/F., TAL Building, 49 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

Holding Company:-

International Artsana S.A., Luxembourg.

Ultimate Holding Company:-

Artsana S.p.A., Italy.

Subsidiaries:-

Caben Business Cons. (Shanghai) Co. Ltd., China.

Caben Chicco Moulds Co. Ltd., China.

Caben Product Design Co. Ltd., China.

Associated/Affiliated Companies:-

Artsana Group of Companies

Artsana Argentina S.A., Argentina.

Artsana Belgium S.A., Belgium.

Artsana Brasil Ltda., Brasil.

Artsana France S.A.S., France.

Artsana Germany GmbH, Germany.

Artsana India Private Ltd., India.

Artsana Mexico S.A. de C.V., Mexico.

Artsana Portugal S.A., Portugal.

Artsana Spain S.A., Spain.

Artsana Sud S.p.A., Italy.

Artsana Suisse S.A., Switzerland.

Artsana U.K. Ltd., UK.

Artsana U.S.A. Inc., US.

Boppy S.r.l., Italy.

Caben Far East Ltd., Hong Kong. [Dissolved]

Caben Ltd., Hong Kong. [Dissolved]

Chicco Vertriebsgesellschaft mbH, Austria.

Co-Graf S.p.A., Italy.

Fashion Village S.r.l., Italy.

OOO Artsana Rus, Russia.

Prenatal S.p.A., Italy.

S.C. Artsana Romania SRL, Romania.

The Boppy Co. LLC, US.

etc.

BUSINESS REGISTRATION NUMBER

36909620

COMPANY FILE NUMBER

1056338

MANAGEMENT

Managing Director: Mr. Francesco Ronga

Director & Contact Person: Mr. Giovanni Galbiati

CAPITAL

Nominal Share Capital: HK$23,400,000.00 (Divided into 23,400,000 shares of HK$1.00 each)

Issued Share Capital: HK$23,400,000.00

SHAREHOLDER: (As per registry dated 03-07-2013)

Name	No. of shares
International Artsana S.A. 427-429, Rte De Thionville Residences Des Jardins, L-5887 Alzingen, Luxembourg.	23,400,000 ========

DIRECTORS: (As per registry dated 19-06-2013)

Name (Nationality)	Address
Giovanni GALBIATI	Via Mentana 11, 22100 Como, Italy.
Francesco RONGA	Via Ronchi, 41, 38123 Povo, Trento, Italy.
Michele LERICI	Via Correggio 19, 20149 Milano, Italy.

SECRETARY: (As per registry dated 21-03-2014)

Name	Address	Co. No.
Tricor Corporate Secretary Ltd.	Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.	0714799

HISTORY

The subject was incorporated on 3rd July, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject’s registered address was located at Level 28, Three Pacific Place, 1 Queen’s Road East, Hong Kong where was the old operating address of Tricor Corporate Secretary Ltd. [Tricor]. Tricor moved to Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong in April 2014.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of baby accessories, garments, toys, cosmetics.

Employees: 20.

Commodities Imported: China, India, Taiwan, South Korea, other Asian countries and acquired from local suppliers.

Markets: Italy, other European countries, North America

Terms/Sales: L/C or as per contracted.

Terms/Buying: L/C, D/P

MEMBERSHIP

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKC0717]

The Italian Chamber of Commerce in Hong Kong and Macao, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$23,400,000.00 (Divided into 23,400,000 shares of HK$1.00 each)

Issued Share Capital: HK$23,400,000.00

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory manner.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

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

Standing: Very Good.

GENERAL

Caben Asia Pacific Ltd. is a wholly-owned subsidiary of International Artsana S.A. which is a Luxembourg-based firm. The ultimate holding company Artsana S.p.A. [Artsana] is an Italy-based firm.

The Managing Director of the subject Francesco Ronga is an Italian who is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. The other director of the subject Mr. Giovanni Galbiati is also an Italian currently residing in Italy.

The subject is the Asia Pacific regional headquarters of the multinational group of companies headed by Artsana S.p.A. which owns many internationally famous brands, including household names such as “CHICCO” and “Prenatal”. The subject in total employs about 250 employees in the Asia Pacific region.

The subject’s China operations are based on three wholly foreign owned investment enterprises. From its strategic base in China, assisted by the subject, the China enterprises are involved in every aspect of Artsana Group activities in the Asia Pacific region. These activities include merchandising, the whole range of Artsana products which vary from children’s clothing, toys and accessories, to medical equipment, cosmetics and fashions. The followings are the main products of the subject:

Footwear, Garment, Clothing - Knitted, Clothing - Woven, Medical Equipment, Medical Supply, Battery Operated Toy, Die-cast Toy & Metal Toy, Doll & Accessories, Educational Toy, Electronic Toy, For Babies, General Toy, Ride-on Toy, Soft Toy, etc.

Most of the commodities are sourced from China. It also sources commodities from India, Taiwan, South Korea, the other Asian countries, etc. Products are exported to Italy, other European countries, North America, etc. Business is active.

In order to source more commodities from China, the subject usually take part in China Canton Fair which is held in Guangzhou City, Guangdong Province, China biannually.

The subject is one of the members of the Artsana Group. The headquarters of the Artsana Group are located in Grandate, in the province of Como, in one of Italy’s most active industrial areas. Now, the Group has over 7,350 employees in the 23 branches worldwide (16 in Europe).

Artsana Group has eight production units present throughout the European Union. Including dealers and distributors, the Group markets its brands in over one hundred countries while Chicco and Prénatal sales points – both direct and in franchising – are over 600.

The Group focuses on two main business areas: Baby and Health & Beauty Care, which yielded 80% and 20%, respectively, of the €1.468 million in turnover recorded in 2010. This figure is undergoing constant growth and keeps pace with the international expansion of the Artsana Group.

An integral part of the Group for all intents and purposes, yet independent in operations, is Prénatal whose headquarters are located in Agrate Brianza, in the province of Milan. In Grandate, one can find the largest CHICCO Store in the world and the Toy Horse Museum.

Now, Artsana has had affiliated companies in Switzerland, France, Belgium, the United Kingdom, Germany, Spain, Portugal, Argentina, Brazil, Austria, the United States, Russia, India, Mexico, Italy, Romania, etc.

The subject is fully supported by Artsana. History in Hong Kong is over eight years.

On the whole, in view of the background and history of the subject, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.95
UK Pound	1	Rs.102.78
Euro	1	Rs.81.39

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	NIS

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.