MIRA INFORM REPORT

 

 

Report No. :

309321

Report Date :

24.02.2015

 

IDENTIFICATION DETAILS

 

Name :

LUMENIS (HK)  LTD.

 

 

Formerly Known As :

HIGHGROUND LTD

 

 

Registered Office :

Unit 2602, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

02.03.2001

 

 

Com. Reg. No.:

31727196

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of all kinds of Medical Laser Equipment.

 

 

No of Employees :

13

 

 

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 – 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 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 & ADDRESS

 

LUMENIS (HK) LTD.

 

ADDRESS:                   Unit 2602, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:                        852-2174 2800, 2722 5211

FAX:                             852-2722 5151

 

E-MAIL:                        hc.lee@lumenis.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Zhai Qi Ying

 

 

SUMMARY

 

Incorporated on:            2nd March, 2001.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$1,000.00

Issued:                         HK$3.00

 

Business Category:       Medical Laser Equipment Trader.

 

Group Total Revenues:  US$265,356,000  (Year ended 31-12-2013)

 

Employees:                  13.

 

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

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

Unit 2602, 26/F., Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-

Lumenis Ltd., Israel.

 

Associated Companies:-

Lumenis Group of Companies

Ke Yi Ren Medical Laser Equipment Trading (Beijing) Co. Ltd., China.
[Also known as
Lumenis Medical Laser Equipment Trading (Beijing) Co. Ltd.]

Lumenis (Asia Pacific) Ltd., Hong Kong.

Lumenis (Australia) Pty. Ltd., Australia.

Lumenis (France) SARL, France.

Lumenis (Germany) GmbH, Germany.

Lumenis (Italy) SRL, Italy.

Lumenis (Mexico) SA de CV, Mexico.

Lumenis (Singapore) Pte. Ltd., Singapore.

Lumenis (UK) Ltd., UK.

Lumenis do Brasil Produtos Medicos Ltda., Brazil.

Lumenis Holdings (Holland) BV, Netherlands.

Lumenis Holdings Inc., USA.

Lumenis Inc., USA.

Lumenis India Private Ltd., India.

Lumenis Japan Co. Ltd., Japan.

Lumenis Ltd., China.

Wuhan Sharplan Chutian Medical Laser Manufacturing Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

31727196

 

 

COMPANY FILE NUMBER

 

0748894

 

 

MANAGEMENT

 

Managing Director:  Mr. Zhai Qi Ying

 

 

CAPITAL

 

Nominal Share Capital: HK$1,000.00 (Divided into 1,000 shares of
HK$1.00 each)

 

Issued Share Capital: HK$3.00

 

 

SHAREHOLDER

(As per registry dated 02-03-2014)

 

Name

 

No. of shares

Lumenis Ltd.

P.O.Box 240, Yokneam 20692, Israel.

 

3

=

 

 

DIRECTORS

(As per registry dated 02-03-2014)

 

Name

(Nationality)

 

Address

ZHAI Qi Ying

Room 1004, Wuke Garden, Heping District, Tianjin, China.

 

Ophir YAKOVIAN

14 Dov Hoz Street, Ra’anana 43751, Israel.

 

Zipora OZER ARMON

6A Frankfurt Street, Tel Aviv - Yafo 63478, Israel.

 

 

SECRETARY

(As per registry dated 02-03-2014)

 

Name

Address

Co. No.

Sophie Ltd.

4/F., VC House, 4-6 On Lan Street, Central, Hong Kong.

1230352

 

 

HISTORY

 

The subject was incorporated on 2nd March, 2001 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Highground Ltd., name changed to the present style on 18th April, 2001.

 

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           All kinds of medical laser equipment

 

Employees:                  13.

 

Commodities Imported: China, Europe, etc.

 

Markets:                        China, other Asian countries, Europe, North America, etc.

 

Group Total Revenues:  US$226,096,000  (Year ended 31-12-2009)

US$237,730,000  (Year ended 31-12-2010)

US$246,982,000  (Year ended 31-12-2011)

US$248,590,000  (Year ended 31-12-2012)

US$265,356,000  (Year ended 31-12-2013)

 

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

 

Terms/Buying:               L/C, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$1,000.00 (Divided into 1,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$3.00

 

Group Net Income/Loss:            US$  2,689,000  (Year ended 31-12-2009)

US$  5,745,000  (Year ended 31-12-2010)

US$     690,000 (Year ended 31-12-2011)

US$  6,997,000  (Year ended 31-12-2012)

US$17,393,000  (Year ended 31-12-2013)

 

Profit or Loss:               Making a small profit every year.

 

Condition:                     Keeping in a satisfactory manner.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

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

 

Standing:                      Normal.

 

 


GENERAL

 

Having issued 3 ordinary shares of HK$1.00 each, Lumenis (HK) Ltd. is a wholly owned subsidiary of Lumenis Ltd. [Lumenis together with its subsidiaries (the “Company”)] which is an Israel-based firm.  The subject is the sales and marketing office of Lumenis.

 

Lumenis is the global leader in medical and aesthetic lasers and light-based technology.  Lumenis is dedicated to improving people’s lives with advanced technological solutions for treating their medical and cosmetic conditions.  The name Lumenis means “Light of Life” in Latin.

 

Its legal and commercial name is Lumenis Ltd., and it was incorporated in Israel on 21st December, 1991 initially under the name E.S.C. – Energy Systems Corporation Ltd. and subsequently, from 1995, under the name ESC Medical Systems Ltd. In January 1996, it completed an initial public offering of our ordinary shares in the United States.  In 1998, it acquired Laser Industries Ltd. and, in 2001, it purchased Coherent Medical Group, to which it referred as CMG, the medical division of Coherent, Inc.  On 13th September, 2001, it changed its name to Lumenis Ltd.  It is a public limited liability company and operate under the provisions of Israel’s Companies Law 5759-1999.

 

For most of the Company’s current products, it utilizes laser technology to deliver light energy for specific body tissues to achieve the desired clinical outcomes in variety of medical procedures, including ablation or enucleation, or removal of, unwanted or diseased tissue such as enlarged prostate and tumors, cauterizing surgical wounds to prevent bleeding, fixation of important anatomical like a detached retina or aesthetic treatment such as skin rejuvenation and the removal of unwanted hair.  The Company’s products use proprietary technology and, accordingly, the Company holds numerous patents and licenses.

 

The principal target markets for its products are hospitals, outpatient clinics, ambulatory surgery centres, physicians’ offices and private clinics.  It markets, sells and services its products primarily through its direct sales force and customer service employees in the following five countries: the United States, Germany, Japan, China (including Hong Kong) and India, with sales of certain product lines in Italy also being effected directly.  It sells the remainder of its products through its global distributor networks, consisting of over 135 independent global distributors.  These distributors sell their products in over 80 countries worldwide.

 

The ordinary shares of Lumenis (then known as ESC Medical Systems Ltd.) were first listed and began trading on the NASDAQ National Market (now known as the NASDAQ Global Market) on 24th January, 1996 under the ticker symbol “ESCMF”, which was changed to the ticker symbol “ESCM” as of 17th September, 1999.  On 24th September, 2001, its shares began trading under the ticker symbol “LUME”.  On 6th February, 2004, its ordinary shares were delisted from the NASDAQ National Market and transferred to the Pink Sheets, trading under the ticker symbol “LUME.PK”.

 

There has been no quoted market price for its ordinary shares since 26th April, 2006, when its ordinary shares ceased to be quoted on the Pink Sheets Electronic Quotation Service, or the Pink Sheets. See “Markets” in Item 9.C below for further information and “Risk Factors” in Item 3.D above for information regarding the lack of liquidity of its ordinary shares.

 

Its ordinary B shares have been offered and listed for trading on the NASDAQ Global Select Market under the symbol “LMNS” since 27th February, 2014.

 

The customers for the Group’s medical products include doctors, clinics, hospitals and other health care providers whose willingness and ability to purchase its products depends in part upon their ability to obtain reimbursement for medical procedures using its products from third-party payers, including private insurance companies, and, in the United States, from health maintenance organizations, and federal, state and local government programs, including Medicare and Medicaid.

 

Lumenis’ business was profitable in the past four years.

 

On 4th March, 2014, the Group closed a public offering of its ordinary B shares, and, concurrently with the offering, listed its ordinary B shares on the NASDAQ Global Select Market under the symbol “LMNS.

 

The Group is a leading global, diversified and growing provider of innovative energy-based, minimally invasive clinical solutions.  It has established a strong brand and leadership position across its three segments: surgical, ophthalmic and aesthetic.  It provides energy-based solutions for both medically necessary and elective procedures, primarily for the aging population.  For the year ended 31st December, 2013, it generated US$265.4 million in revenues, growing 6.7%, US$17.4 million in net income, growing 148.6%, and US$26.0 million in adjusted EBITDA, growing 45.7%, in each case, compared to the prior year.

 

The total employees of the Group is about 1,061.

 

The subject is fully supported by Lumenis.  History in Hong Kong is over thirteen years and six months.

 

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

 

 

REMARKS

 

Brief personal profile of the directors:-

 

Mr. ZHAI Qi Ying (Senior Vice President and President of Lumenis China and Asia Pacific), aged 49, was appointed a Senior Vice President in November 2011, he has served as President of Lumenis China and Asia Pacific since joining Lumenis in April 2001 as part of the acquisition of CMG.  In 1992, Mr. Zhai started the Coherent operations in China and managed them until the acquisition of CMG.  He holds a Bachelor’s degree in Physics from University of Tianjin, China.

 

Ms. Zipora (Tzipi) OZER-ARMON, (Chief Executive Officer) aged 48, Prior to joining Lumenis, Ma. Ozer-Armon held various management positions at Teva since October 2009, in her latest position heading Teva’s Japanese market activities, a business of over $800 million in annual revenue.  Previously, Ms. Ozer-Armon held various management positions at SanDisk Corporation, following its acquisition of M-Systems, from 2006 to 2008, including Senior Vice President, Retail Sales & Marketing.  Prior thereto, Ms. Ozer-Armon served as Corporate Vice President, General Manager of the DiskOnKey division at M-Systems Ltd., from 2004 to 2006, and as Vice President of Corporate Development at Comverse Inc., from 1999, to 2004.  Ms. Ozdr-Armon served as Vice President at Shaldor Ltd., a management consulting from based in Israel, from 1991 to 1995.  In addition, Ms. Ozer-Armon serves on the board of the Cargal Group since 2012 and is a member of its audit committee.  Ms Ozer-Armon holds a bachelor’s degree magna cum laude in economics and an MBA majoring in finance and marketing from Tel Aviv University.

 

Mr. Ophir YAKOVIAN, (Chief Financial Officer), aged 39, Prior to joining Lumenis, Mr Yakovian served as Vice President - Finance, for verint Systems Inc., a global leader in Actionable Intelligence solutions & value-added services, from 2006.  Prior thereto, he served as Corporate Controller at Metalink Ltd.  From 2001 to 2006 and as a Senior Auditor at Deloittle Touche Tohmatsu from 1998 to 2001.  Ms. Yakovian holds a bachelor’s degree in economics and accounting and a master’s degree in business economics from Bar-Ilan University, Israel, and is a certified public accountant in Israel.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.18

UK Pound

1

Rs.95.71

Euro

1

Rs.70.76

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

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.