MIRA INFORM REPORT

Report No. :	316750
Report Date :	15.04.2015

IDENTIFICATION DETAILS

Name :	SWEDISH TRADING CO. LTD.
Registered Office :	Unit 604, 6/F., New Bright Building, 11 Sheung Yuet Road, Kowloon Bay, Kowloon
Country :	Hong Kong
Date of Incorporation :	05.01.1934
Com. Reg. No.:	00013881
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Distributor of Mechanical machinery, apparatus and parts, heating and cooling equipment and parts, environmental equipment, medical equipment
No. of Employee :	120. (Including associates)

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 :	Exists

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Hong Kong	A1	A1

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 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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

Source : CIA

Company name & address

SWEDISH TRADING CO. LTD.

ADDRESS: Unit 604, 6/F., New Bright Building, 11 Sheung Yuet Road, Kowloon Bay, Kowloon, Hong Kong.

PHONE: 852-2953 5111, 2953 5173

FAX: 852-2798 8262

E-MAIL: stc@swedishtrading.com

MANAGEMENT

Managing Director: Mr. Michael Thomas Rasborn

SUMMARY

Incorporated on: 5th January, 1934.

Organization: Private Limited Company.

Issued Share Capital: HK$27,000,000.00

Business Category: Machinery and Equipment Trader.

Employees: 120. (Including associates)

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

Banking Relation: Very Good.

Company name & address

SWEDISH TRADING CO. LTD.

ADDRESS:

Registered Head Office:-

Unit 604, 6/F., New Bright Building, 11 Sheung Yuet Road, Kowloon Bay, Kowloon, Hong Kong.

Warehouse:-

Unison Industrial Centre, Fo Tan, Shatin, New Territories, Hong Kong.

[Tel: 852-2698 1226, Fax: 852-2691 1178]

Mailing Address:-

G.P.O. Box 108, Hong Kong.

Affiliated Factory: China.

Holding Company:-

Swedish Trading International Holdings Ltd., Hong Kong. (Same address)

Associated/Affiliated Companies:-

Controlled Medications Ltd., Hong Kong.

Corrosion & Maintenance Engineering Co. Ltd., Hong Kong.

East Concord Ltd., Hong Kong.

Shriro Equipment Ltd., Hong Kong.

Steelmaster Industries Ltd., Hong Kong.

Sweco Industrial Supplies Ltd., Hong Kong. [Dissolved]

Swedish Bearing Services Ltd., Hong Kong.

etc.

BUSINESS REGISTRATION NUMBER

00013881

COMPANY FILE NUMBER

0001233

MANAGEMENT

Chairman: Mr. Michael Thomas Rasborn

Group Director: Mr. Odd Christopher Ulfeng

Sales Director: Mr. Lau Chi Dor, Caleb

Contact Person: Ms. Karen Ko

ISSUED SHARE CAPITAL

HK$27,000,000.00

SHAREHOLDER

(As per registry dated 05-01-2015)

Name	No. of shares
Swedish Trading International Holdings Ltd., Hong Kong.	270,000 ======

DIRECTORS

(As per registry dated 05-01-2015)

Name (Nationality)	Address
Michael Thomas RASBORN	8 Braga Circuit, Kowloon, Hong Kong.
Jean-Claude BRETEAU	2608 Parkway Court, 4 Park Road, Hong Kong.
Odd Christopher ULFENG	House A5, Las Pinadas, DD 230, Lot 245, Off Clear Water Bay Road, Ta Ku Ling, Hong Kong.
LAU Chi Dor, Caleb	Flat B, 5/F., Power Court, Ville De Cascade, 2-4 Lai Wo Lane, Fo Tan, Shatin, New Territories, Hong Kong.
Michelle Lynn RASBORN	House A5, Las Pinadas, DD 230, Lot 245, Off Clear Water Bay Road, Ta Ku Ling, Hong Kong.

SECRETARY

Michael Thomas RASBORN (As per registry dated 05-01-2015)

HISTORY

The subject was established in 1913 and incorporated on 5th January, 1934 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of The Swedish Trading Co. Ltd., name changed to Swedish Trading Co. Ltd. on 11th March, 1965.

Formerly the subject was located at Unit 204, 2/F., New Bright Building, 11 Sheung Yuet Road, Kowloon Bay, Kowloon, Hong Kong, moved to Unit 604 of the same building in August 2013.

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

OPERATIONS

Activities: Importer, Exporter and Distributor.

Lines: Mechanical machinery, apparatus and parts, heating and cooling equipment and parts, environmental equipment, medical equipment

Agents for:-

Brand/Official Agent	Product/Service	Country of Origin
AESYS Technologies	Boiler	US
Alstom Power John Thompson	Boiler	South Africa
American Dryer Corporation	Machine – Laundry, Industrial Use	US
Beissbarth	Automotive Equipment	-
Bourgeat	Hotel / Catering Electrical Facility – Kitchen Equipment	France
Bourgeois	Hotel / Catering Electrical Facility – Catering Equipment	France
Cissell	Machine – Laundry, Industrial Use	US
Crown Food Service Equipment	Hotel / Catering Electrical Facility – Kitchen Equipment	US
D.J. Giancola Exports	Machine – Laundry, Industrial Use	US
D’Hooge Industries	Machine – Laundry, Industrial Use	Belgium
DIHR	Hotel / Catering Electrical Facility – Catering Equipment	Italy
Electrolux Laundry Systems	Machine – Laundry, Industrial Use	Sweden
Electrolux Professional	Hotel / Catering Electrical Facility – Kitchen Equipment	Italy
Erbe Electromedical System	Medical Equipment	Germany
Facultatieve Technologies	Machinery – Miscellaneous (Incinerator and Crematorium)	UK
Fiocchetti	Medical Equipment	Italy
Firbimatic	Machine – Laundry, Industrial Use	Italy
Fujimak	Hotel / Catering Electrical Facility – Kitchen Equipment	Japan
Fulton Boiler Works	Boiler	US
Funeralia	Medical Equipment	France
Gedore-Klann	Automotive Equipment	-
Hatco	Hotel / Catering Electrical Facility – Kitchen Equipment	US
Hoffman / New Yorker	Machine – Laundry, Industrial Use	US
Ilsa	Machine – Laundry, Industrial Use	Italy
IME	Hotel / Catering Electrical Facility – Kitchen Equipment	Germany
Jensen	Machine – Laundry, Industrial Use	Singapore
Ken A/S	Medical Equipment	Denmark
KHT Central Supply	Machine – Laundry, Industrial Use	Thailand
Laundry Systems Group	Machine – Laundry, Industrial Use	Netherlands
Magiglidc	Furniture / Furnishing Accessories – Plastic Tools	France
Magik-Stik	Machine – Laundry, Industrial Use	Italy
Maxi Companies	Machine – Laundry, Industrial Use	US
Medisafe UK Ltd.	Medical Equipment	UK
Melag	Medical Equipment	Germany
Metro International	Hotel / Catering Electrical Facility – Kitchen Equipment	US
Migel	Hotel / Catering Electrical Facility – Kitchen Equipment	Italy
Polymark Franklin	Machine – Laundry, Industrial Use	UK
Pompes Salmson	Water Pump	Singapore
Pony SpA	Machine – Laundry, Industrial Use	Italy
Pumpex AB	Water Pump	Sweden
Railex	Machine – Laundry, Industrial Use	US
Renzacci SpA	Machine – Laundry, Industrial Use	Italy
Steelmaster	Cold Rooms	Hong Kong
Sterilox	Medical Equipment	UK
Steris	Medical Equipment	US
Supar Technology	Hotel / Catering Electrical Facility – Electostatic Precipitator	Taiwan
Technical Equipment	Boiler	New Zealand
The Montague	Hotel / Catering Electrical Facility – Catering Equipment	US
Transferon Zaiser	Machine – Laundry, Industrial Use	Germany
Zenit SpA	Water Pump	Italy
Zumex	Hotel / Catering Electrical Facility – Catering Equipment	Spain
etc.

Office Area: 1,194 sq.m. in Hong Kong.

Employees: 120. (Including associates)

Commodities Imported: Imported from Sweden, other European countries, etc.

Markets: Hong Kong, China, Macau, other Asian countries, etc.

Terms/Sales: COD or as per contracted.

Terms/Buying: As per contracted.

GOVERNMENT CONTRACTS AWARDED SINCE 1990:

Date	GN No.	Tender Board – Department	Amount
25-01-1990	GN341	Public Works Tender Board – Architectural Services Dept.	HK$261,275
25-01-1990	GN344	Government Supplies Dept. Tender Board – Government Supplies Dept.	HK$845,200
23-02-1990	GN683	Public Works Tender Board – Architectural Services Dept.	HK$1,742,500
30-03-1990	GN1180	Public Works Tender Board – Architectural Services Dept.	HK$212,784
29-06-1990	GN2328	Public Works Tender Board – Architectural Services Dept.	HK$542,069
28-09-1990	GN3502	Public Works Tender Board – Architectural Services Dept.	HK$1,991,198
25-10-1990	GN3882	Government Supplies Dept. Tender Board – Government Supplies Dept.	HK$286,359
28-12-1990	GN4657	Public Works Tender Board – Architectural Services Dept.	HK$242,774
28-12-1990	GN4660	Government Supplies Dept. Tender Board – Government Supplies Dept.	HK$212,814
22-02-1991	GN670	Public Works Tender Board – Architectural Services Dept.	HK$503,213
28-03-1991	GN1116	Public Works Tender Board – Architectural Services Dept.	HK$3,879,747
28-03-1991	GN1119	Government Supplies Dept. Tender Board – Government Supplies Dept.	HK$207,050
26-04-1991	GN1453	Government Supplies Dept. Tender Board – Government Supplies Dept.	HK$292,500
31-05-1991	GN1885	Public Works Tender Board – Architectural Services Dept.	HK$1,278,102
28-06-1991	GN2228	Public Works Tender Board – Architectural Services Dept.	HK$2,996,172
26-07-1991	GN2659	Government Supplies Dept. Tender Board – Government Supplies Dept.	HK$383,197
26-07-1991	GN2659	Government Supplies Dept. Tender Board – Government Supplies Dept.	HK$867,246
30-08-1991	GN3086	Government Supplies Dept. Tender Board – Government Supplies Dept.	HK$648,900
29-11-1991	GN4305	Public Works Tender Board	HK$1,362,744
27-12-1991	GN4643	Public Works Tender Board	HK$269,062
27-12-1991	GN4646	Government Supplies Dept. Tender Board	HK$749,965
27-03-1992	GN1102	Public Works Tender Board	HK$1,403,878
29-05-1992	GN1880	Central Tender Board – Architectural Services Dept.	HK$19,705,585
31-07-1992	GN2739	Public Works Tender Board	HK$1,928,443
28-08-1992	GN3109	Public Works Tender Board	HK$875,430
28-08-1992	GN3111	Central Tender Board – Electrical and Mechanical Services Dept.	HK$22,887,200
27-11-1992	GN4270	Public Works Tender Board	HK$584,840
31-12-1992	GN4692	Central Tender Board – Architectural Services Dept.	HK$5,908,351
31-12-1992	GN4692	Central Tender Board – Architectural Services Dept.	BEF17,299,818
31-12-1992	GN4692	Central Tender Board – Architectural Services Dept.	DM982,168
31-12-1992	GN4692	Central Tender Board – Architectural Services Dept.	GBP318,504
25-06-1993	GN2223	Government Supplies Dept. Tender Board	HK$260,000
30-07-1993	GN2753	Government Supplies Dept. Tender Board	HK$272,840
27-08-1993	GN3132	Public Works Tender Board – Architectural Services Dept.	HK$550,390
30-09-1993	GN3587	Public Works Tender Board – Electrical and Mechanical Services Dept.	HK$4,113,510
29-10-1993	GN3992	Government Supplies Dept. Tender Board	HK$234,000
28-04-1995	GN1525	Government Supplies Dept. Tender Board	HK$475,400
27-12-1996	GN6069	Government Supplies Dept. Tender Board – Government Supplies Dept.	HK$623,000
29-05-1998	GN2661	Government Supplies Dept.	HK$4,998,260
27-08-1999	GN5024	Electrical and Mechanical Services Dept.	HK$2,865,300
25-01-2002	GN636	Government Supplies Dept.	HK$624,465
28-03-2002	GN1966	Architectural Services Dept.	HK$3,500,000
28-03-2002	GN1966	Architectural Services Dept.	HK$9,480,000

MEMBERSHIP

The Hong Kong General Chamber of Commerce, Hong Kong. [Membership No. HKS0237]

[Under the name of Swedish Trading International Holdings Ltd.]

The Swedish Chamber of Commerce in Hong Kong.

FINANCIAL INFORMATION

Issued Share Capital: HK$27,000,000.00

Mortgage or Charge:-

Date of Charge Over Deposits – CD 2 (08): 13-01-2009

Amount: To secure the payment or discharge of all moneys, obligations and liabilities, whether actual or contingent at the date of the Charge or at any time after the date thereof, due, owing or incurred by Swedish Trading Co. Ltd., Controlled Medications Ltd., Steelmaster Industries Ltd., Corrosion & Maintenance Engineering Co. Ltd., Swedish Bearing Services Ltd. and East Concord Ltd. to Standard Chartered Bank (Hong Kong) Ltd.

Property: 1) By fixed Charge: all the Company’s rights in respect of (i) the sum deposited by the Company; and (ii) all other sums in any currency from time to time standing to the credit of the Company or the credit of any other person for the Company’s benefit whether alone or jointly with others, on any deposit account with the Bank or any other SCB Group Company including additions to or renewals or replacements of such sum; and all interest from time to time accruing or payable on the sums specified in (i) and (ii) above;

2) By assignment: all Deposits held with any SCB Group Company

Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Profit or Loss: Making profits in the past years.

Condition: Business is active and steady.

Facilities: Making active use of general banking facilities.

Payment: Very good.

Commercial Morality: Satisfactory.

Bankers:-

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

Citibank N.A., Hong Kong Branch.

Banking:-

One bank source reports they have maintained a very active and well conducted current account with the bank of many years on which they grant facilities against security. They handle their large import and considerable export bills with entire satisfactory results.

Standing: Very Good.

GENERAL

Swedish Trading Co. Ltd. was established in Hong Kong in 1913 as a small representative office handling China trade for its mother company and a number of other business concerns in Sweden. Formal incorporation of the subject took place in January 1934.

In the early 1990’s, the subject was comprehensively restructured as the number of product lines increased and started to involve in different activities.

Now, the subject is one of the oldest sales and engineering companies in Hong Kong as it has built up an engineering expertise in a variety of specialised fields. It is a wholly-owned subsidiary of Swedish Trading International Holdings Ltd. [STIH] which is a Hong Kong-based firm. STIH is also located at the same address as the subject.

STIH now has 12 companies (including five overseas companies) under it.

The subject is an importer, exporter, distributor, consultancy service provider. It is also engaged in total in-house design, tendering, installation, site supervision, testing/commissioning and comprehensive after-sales service for its product ranges:

It carries the following products:

Industrial laundry equipment, commercial catering equipment, generic drugs, medical equipment, environmental protection equipment, walk-in cold rooms, boiler plants, drainage and sewage pumps and associated building services equipment, incinerators, crematorium plants, steam/compressed air plants, general electro-mechanical equipment, waste disposal systems, waste-heat recovery systems, ball bearing, garage and hand tools, mechanical packing and seals and maintenance products.

In Hong Kong, the subject has set up the following departments:

Medical Department, Pharmaceutical Department, Laundry Department, Industrial & Automotive Department, Catering Equipment Department, Pump Department, and Special Project Department.

The subject is a Hong Kong Government approved specialist contractor as its expertise has been acknowledge by both private and public sectors for several decades. The subject has been qualified to handle projects of unlimited contract value for the Hong Kong SAR Government with approval from the Secretariats Work Branch under the category of “Manufacture and Erection of Mechanical Plants Equipment, Group II (Contracts/Sub-contracts of unlimited value)” since 11th August, 1988. The other Hong Kong SAR Government approvals are:-

Approved Suppliers of Materials and Specialist Contractors for Public Works – Manufacture and Erection of Mechanical Plants Equipment Group II granted since 11th August 1988.

Approved Supplier of Materials and Specialist Contractors under the category of “Steam, Compressed Air Plant and Associated Installations” granted since 31st July 1986.

Approved Supplier of Materials and Specialist Contractors under the category of “Commercial Kitchen and Catering Equipment” granted since 9th May 1983.

The subject has got the following QM Certificates:-

Certificate Company for Quality Assurance System – ISO 9001:2008 (Certificate No.: CC050).

Besides, the subject has got the following licences and permits:-

Antibiotics Permit – No. 9110;

Certificates of Registration of Electrical Contractor - No. 008893;

Import/Export Licence – No. 00045;

Radio Dealers Licence – No. 005729;

Wholesale Dealer’s Licence to Supply Dangerous Drugs – No. 001392; &

Wholesale Poisons Licence – No. 12453.

The subject is also a Registered Subcontractor of the Construction Industry Council under the Voluntary Subcontractor Registration Scheme. Its registration No. is R001811 and the expiry date is 25th January, 2015. It offers clients with consultancy service, maintenance service and project engineering.

The subject’s prime markets are Hong Kong, China and Macau.

The subject and its parent, related companies have formed the STC Group.

The subject is fully supported by its holding company and associated companies. Annual sales turnover is very significant. Has made good profits in some of the past years.

Now, the subject has had the following customers: Hong Kong Government, Hong Kong hotels, hospitals, building and mechanical contractors in Hong Kong, Macau and China.

The foreign directors of the subject have been in Hong Kong for a very long time.

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

REMARKS

Court case:-

Action Date	Case No.	Plaintiff	Defendant	Cause	Amount
Feb. 2003	H158	Lee Keung	Swedish Trading Co. Ltd. and others	Damages	Not stated
Feb. 2003	H159	Liu Kwok Hung	Swedish Trading Co. Ltd. and others	Damages	Not stated

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.39
UK Pound	1	Rs.91.06
Euro	1	Rs.66.16

INFORMATION DETAILS

Analysis Done by :	RAS
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%)

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