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Report Date : |
05.05.2014 |
IDENTIFICATION DETAILS
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Name : |
AXSTORES FAR
EAST LTD. |
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Formerly Known as : |
Ahlens Far East
Ltd. |
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Registered Office : |
16/F., The Cameron, 33 Cameron Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
10.10.1986 |
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Com. Reg. No.: |
10713566 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
· Importer, Exporter, Re-exporter, Agent and Representative of Garments, other textile products, electronic equipment, cosmetics, and general merchandises. subject is a regional office of
Axstores. Subject is a buying office for its Swedish parent i.e.,
Axstores AB |
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No of Employees : |
27 (Hong Kong) 3,600 (Axstores
Group average number of full-time employees as at 31-12-2013) |
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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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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 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 |
AXSTORES FAR EAST LTD.
16/F., The Cameron, 33 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2367 7122
FAX: 852-2311 2483, 2368 6642
E-MAIL: celina.cheung@afe.ahlens.com.hk
General Manager: Ms. Angie Chu
Incorporated on: 10th October, 1986.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$20.00
Business Category: Agent and Representative.
Group Net Sales:- (Year ended 31-12-2013)
SEK 7,436 million (Axstores Group)
Company Employees: 27. (Hong Kong)
Group Employees: 3,600. (Axstores Group average number of full-time employees as at 31-12-2013)
Main Dealing Banker: Skandinaviska Enskilda Banken AB (publ), Hong Kong Branch.
Banking Relation: Very Good.
Registered Head
Office:-
16/F., The Cameron, 33 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
Branch
Offices:
China (Shanghai), India (New Delhi).
Holding Company:-
Axstores AB
Ringvägen 100, SE-118 90 Stockholm, Sweden.
[Tel: 46 (8) 402 8000; Fax: 46 (8) 402 8008]
Ultimate Holding
Company:-
Axel Johnson AB, Sweden.
Associated
Companies:-
Axstores Group of Companies
Associated/Affiliated
Companies:-
Axel Johnson Group of Companies
Åhléns AB, Sweden.
AltoCumulus AB, Sweden.
Axel Johnson Inc., USA.
Axel Johnson International AB, Sweden.
AxFast AB, Sweden.
AxFlow Holding AB, Sweden.
Axfood AB, Sweden.
AxImage AB, Sweden.
AxIndustries AB, Sweden.
AxLoad AB, Sweden.
Cadence Inc., USA.
ConforMis LLC, USA.
Kinetico Inc., USA.
Lagerhaus AB, Sweden.
Martin & Servera AB, Sweden.
Mekonomen AB, Sweden.
Mountain Lumber Co., USA.
NewtrAx LLC, USA.
Nordstjernan AB, Sweden.
Novax AB, Sweden.
Parkson Corporation, USA.
Servera R&S AB, Sweden.
Sprague Operating Resources LLC, USA.
Svensk Bevaknings Tjanst AB, Sweden.
Walk2Campus Holdings LLC, USA.
etc.
10713566
0176235
· General Manager: Ms. Angie Chu
Contact
Person: Ms. Celina Cheung
Nominal Share Capital: HK$10,000.00 (Divided into 1,000 shares of HK$10.00 each)
Issued Share Capital: HK$20.00
(As per registry
dated 10-10-2013)
|
Name |
|
No.
of shares |
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Axstores AB Ringvägen
100, S-118 90 Stockholm, Sweden. |
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2 = |
(As per registry
dated 01-01-2014)
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Name (Nationality) |
Address |
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Lars Gunnar SCHULTZ |
Vitsippsvagen 1, 133 36 Saltsjobaden, Sweden. |
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Johannes Per Goran AVERLING |
Uppsalayagen 4, 740 46 Ostervala, Sweden. |
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Gregg Patrick MOWINS |
Eriksbergsgatan 16 NB, 114-30 Stockholm, Sweden. |
(As per registry
dated 10-10-2013)
|
Name |
Address |
Co.
No. |
|
Secreco Ltd. |
8/F., Gloucester Tower, The Landmark, 15 Queen’s Road
Central, Hong Kong. |
0139490 |
The subject was incorporated on 10th October, 1986 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Tareena Trading Ltd., name changed to Ahlens Far East Ltd. on 15th January, 1988, and further to the present style on 23rd November, 2010.
Formerly the subject was located at Room 1001-1002, 10/F., Kimberley Plaza, 45-47 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 908-909, 9/F., Tower 1, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong Kong on 15th December, 1997, and further to the present address with effect from 18th December, 2010.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter, Re-exporter, Agent and Representative.
Lines: Garments, other textile products, electronic equipment, cosmetics, and general
merchandises.
Company Employees: 27. (Hong Kong)
Group Employees: 3,600. (Axstores Group average number of full-time employees as at 31-12-2013)
Commodities Imported: Imported from Taiwan, India, Japan, Southeast Asia, China, etc.
Markets: Sweden (main), other European countries, etc.
Group Net Sales:-
|
FY |
Axstores Group |
Axel Johnson Group |
|
Year ended 31-12-2009 |
SEK 6,202 million |
SEK 20,073 million |
|
Year ended 31-12-2010 |
SEK 6,657 million |
SEK 20,899 million |
|
Year ended 31-12-2011 |
SEK 7,116 million |
SEK 29,615 million |
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Year ended 31-12-2012 |
SEK 7,261 million |
SEK 62,638 million |
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Year ended 31-12-2013 |
SEK 7,436 million |
SEK 64,573 million |
Terms/Sales: Various terms.
Terms/Buying: L/C or as per contracted.
Nominal Share Capital: HK$10,000.00 (Divided into 1,000 shares of HK$10.00 each)
Issued Share Capital: HK$20.00
Group Net Profit:-
|
FY |
Axstores Group |
Axel Johnson Group |
|
Year ended 31-12-2009 |
SEK 216 million |
SEK 601 million |
|
Year ended 31-12-2010 |
SEK 164 million |
SEK 650 million |
|
Year ended 31-12-2011 |
SEK 74 million |
SEK 933 million |
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Year ended 31-12-2012 |
SEK 50 million |
SEK 751 million |
|
Year ended 31-12-2013 |
SEK 182 million |
SEK 767 million |
Profit or Loss: Business is profitable.
Condition: Business is active.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Good.
Banker: Skandinaviska Enskilda Banken AB (publ), Hong Kong Branch.
Standing: Very Good.
Axstores Far East Ltd. is a wholly-owned subsidiary of Axstores AB [Axstores] which is a Sweden-based firm.
Formerly known as Ahlens Far East Ltd., the subject was incorporated in October 1986 under the name of Tareena Trading Ltd., name changed to Ahlens Far East Ltd. in January 1988 and has become a subsidiary of Åhléns AB [Åhléns] which is a Sweden-based firm since then. Further name changed to the present style on 23rd November, 2010. Accordingly, Åhléns changed name to Axstores.
In turn, Axstores is a wholly-owned subsidiary of Axel Johnson AB [Axel Johnson], also a Sweden-based firm.
The subject has just issued 2 ordinary shares of HK$10.00 each. Formerly it was jointly owned by Åhléns and Mr. Joakim Foresell on equal basis. At that time, the subject had two directors including Mr. Joakim Foresell and Mr. Frank Stig Exner. In March 1998, Mr. Foresell transferred his single share to Mr. Dan Thomas Ekberg who was appointed director on 1st January, 1998. Mr. Foresell resigned on 15th February, 1998 accordingly. On 1st March, 2000, Mr. Dan Thomas Ekberg transferred his share to Ms. Eva Susanne Margaret Iding who was immediately appointed director while Mr. Ekberg resigned. On 5th December, 2001, Ms. Iding resigned and she transferred her share to Mr. Bjarne Mumm on 30th January, 2002. Mr. Bjarne Mumm was appointed as director on 9th January, 2002 but now he has resigned. The subject’s current directors are Leif Åke Göransson and Birgitta Christina Olivensjö.
The subject is a regional office of Axstores. It is a buying office for its Swedish parent. It is responsible for acquiring a variety of commodities in the Asia Pacific region as well as from Europe. Besides, Axstores is also a buying office for Anttila of Finland.
Commodities purchased include carpets, garments, leather products, gifts, toys, household accessories, beauty products, etc. Most of these are sourced from Hong Kong, China, Southeast Asia, India and Taiwan. Prime market is Sweden.
The subject is one of the purchasing offices in the Asia Pacific region. The other purchasing offices are in Shanghai of China, New Delhi of India and Bangladesh.
“Åhléns” is one of the well known brands in Sweden and the leading retailer in a number of fields. Operations are focused on four business areas: Mode (Fashion), Skönhet (Beauty), Hem (Homeware) and Media. Within these product groups, Axstores offers a wide range of stylish and trendy products.
In the 90’s, Axstores began a comprehensive transformation into what would become a modern retail chain of high international standard. All its department stores nation wide are gradually being modernised to become attractive department stores.
Axel Johnson
International consists of four business areas:-
· AxFlow supplies flow handling equipment in Europe and represents many world-leading manufacturers of pumps and related equipment;
AxImage
is general agent for Fuji Film in Sweden and Norway and a supplier of
photographic, graphic and medical equipment;
AxIndustries
is a group of companies that develop and sell components, systems and
customized solutions to industrial companies in the Nordic and Baltic countries
with a focus on heavy vehicles, bearings and transmissions; &
AxLoad
is the leading supplier of lifting and lashing equipment in Europe.
Every day more than a million people come into contact with employees or products and services from one of the Axel Johnson companies. The department stores and specialty stores within Axstores alone attract around 300,000 visitors daily, and Axfood, through its network of stores or via franchise-owners, offers food to a large part of Sweden’s population.
Axel Johnson AB group is one of three independent groups in the Axel Johnson Group together with the property company AxFast and the US company Axel Johnson Inc. The Group also has stakes in Nordstjernan. The Axel Johnson Group is owned by Antonia Axson Johnson and her family.
Axstores is one of the leading retail groups in Europe. In 2013, it had 383 department stores in Sweden, Finland and Norway. The Axstores Group has about 5,000 employees (including part time) and receives over 300,000 customers every day.
In FY 2013, the net sales of Axstores Group amounted to SEK 7,436 million (2012: SEK 7,261 million) and profit after financial items was SEK 182 million (2012: SEK 50 million). The net profit of the Group in 2013 was good.
The market for consumer durable goods was somewhat weaker than expected in 2013. E-commerce continued to gain market shares, resulting in fewer customers in stores and department stores.
2013 was characterized by the change of business systems and improvements of operational efficiency through the streamlining of roles, responsibility and structure.
The Axel Johnson Group’s financial position remained strong over the past years.
Axel Johnson AB group is a family company now is controlled by the fourth and fifth generations with a focus on the Nordic region. Group companies today comprise Axel Johnson International, Novax, Servera, Svensk Bevakningstjänst, Axstores and the partly owned listed companies Axfood and Mekonomen.
In Hong Kong, the subject’s business is mainly handled by Ms. Angie Chu who is also the Merchandise Manager. The contact person is Ms. Celina Cheung. Both are Hongkongese.
The subject has set up branch offices in Shanghai, China and New Delhi, India respectively. Overall business is active and lucrative, the subject is fully supported by its Swedish parent. History in Hong Kong is over twenty‑seven years.
On the whole, consider it good for normal business engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.22 |
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|
1 |
Rs.101.68 |
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Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
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Report Prepared
by : |
MNL |
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 |
|
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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
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 |
|
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.