Swire Pacific's trading businesses encompass the distribution of automobiles, pharmaceuticals and health products, branded apparel, sports shoes and apparel, and the export of sundry manufactured goods. These activities, both wholesaling and retailing, cover a broad geographic spread with principal centres located in Hong Kong, Taiwan, Mainland China and the USA. The division expanded its automobile distribution business with the completion of agreements for the sale of Volvo cars in Hong Kong and certain regions in Mainland China, and the sale of Volvo trucks in Hong Kong.
The trading division's contribution to Group attributable profit in 1997 amounted to HK$104 million, as compared with a contribution of HK$164 million in 1996, a reduction of 36.6%. This was mainly due to reduced profits from the retail operations in Hong Kong, and from both the Taiwan and USA businesses.
Cannon Taiwan Limited
Cannon Taiwan is the sole authorised importer of Volvo cars and commercial vehicles in Taiwan. Sales volumes and profits were lower than in 1996 due to a combination of a strong US dollar, and cautious consumer sentiment affecting demand.
Beldare Limited
Beldare is an authorised distributor of Chrysler cars and jeeps in Taiwan. Sales in 1997 were significantly lower than 1996 in a market weakened by economic uncertainty and results were affected by price competition and inventory clearance programmes. The wholesale distribution arrangements expired in 1997 but the company will continue to operate retail dealerships during 1998.
Taikoo Enterprises Limited
This company operates as the sole authorised distributor for Volvo cars in provinces in Northern and Eastern China. In July 1997, the company added Southern and Central China to its territory. The trading environment remained difficult due to the high costs and regulatory constraints on importation. Sales volumes and margins increased slightly in 1997 although anticipated fleet sales were not achieved.
Taikoo Motors Limited
Taikoo Motors is a newly incorporated company established for the purpose of conducting the business of the distribution, and servicing, of Volvo cars in Hong Kong. Since the commencement of business in July 1997, the performance of the company has been satisfactory.
Taikoo Truck Limited
Taikoo Truck is a new 60:40 joint venture company with Volvo Truck Corporation. The company is the authorised distributor of Volvo trucks in Hong Kong and commenced business in July 1997. Results for the period have met expectations.
Swire Loxley Limited
The company's activities include the marketing, selling and distribution of pharmaceutical, medical and consumer healthcare products in Hong Kong and Mainland China. The company has expanded its product range and sales volume. Operating results were slightly lower than in 1996 due to product mix changes.
Swire Resources Limited
Swire Resources is the holding company for the division's athletic and leisure footwear and apparel business. The company operates over 60 stores in Hong Kong and Mainland China consisting of Marathon Sports, The Athlete's Foot, Gigasports and M Street. The company also markets a variety of well-known brands such as Surf-Siders, Rockport, Vans, Skechers and Sergio Tacchini. The depressed retail market in the latter half of the year adversely affected sales and the company reported a loss for the year.
Reebok Hong Kong Limited
The company is a joint venture with Reebok International for marketing and distribution of Reebok footwear, apparel and accessories in Hong Kong, Macau and Mainland China. In 1997, the company suffered from a soft market and a difficult competitive environment. However, sales and earnings for the year were maintained at the same level as 1996.
Intermarket Agencies (Far East) Limited
Intermarket Agencies is a joint venture with the Pentland Group of the UK. The company holds the rights to market and distribute various Pentland owned or licensed brands, including Ellesse and Speedo sportswear in Hong Kong, Macau and Mainland China. In 1997, results were below expectations and the company sustained a loss for the year.
The Eagle's Eye International Limited
The company and its subsidiaries are engaged in the design and marketing of ladies' and children's apparel for the USA wholesale and retail markets. In addition, in 1997, the company developed its design and manufacturing businesses as licensee of the Nautica brand for girls. The continuing difficult USA retail market adversely affected sales throughout the year and the group incurred a loss for the year.
Swire & Maclaine Limited
The company and its associates have offices in 12 countries in Asia and the Indian subcontinent. Acting as a buying agent, the company exports a wide range of products to retail groups in the USA, Europe and other major world markets. The company's performance improved significantly in 1997 despite the loss of some accounts in the competitive USA retail market.
Camberley Enterprises Limited
The company designs, manufactures and sources apparel. Customers include international brands, designers, specialty and department stores, other retailers and apparel companies in the UK, the USA and Japan. Major activities in 1997 included the development of the in-house brand "PRHK" and the expansion of testing facilities in Mainland China. Profits in 1997 were higher than in 1996.
| © Copyright 1996-2008 irasia.com Ltd. All rights reserved. Tel: (852) 2831-9792. |
|
DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any
information provided on this website. Under no circumstances shall irasia.com Ltd be liable
for damages resulting from the use of the information provided on this website.
TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website. |