MIRA INFORM REPORT

Report Date :

15^th November, 2006

IDENTIFICATION DETAILS

Name :	CONTINENTAL CHEMICAL CORPORATION PTE LTD.
Registered Office :	No 2 Seraya Place Jurong Island, Singapore 627857, Singapore
Country :	Singapore
Financials (as on) :	31.12.2004
Date of Incorporation :	22.12.1994
Legal Form :	^Pte Ltd
Line of Business :	Wholesale of Chemicals

RATING & COMMENTS

MIRA’s Rating :

Aaa

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Company name

CONTINENTAL CHEMICAL CORPORATION PTE LTD

Line Of Business 

WHOLESALE OF CHEMICALS

Parent Company

CONTINENTAL CHEMICAL HOLDINGS LTD

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY2004

COMPANY

Sales : US$172,625,598

Networth : US$67,639,958

Paid-Up Capital : US$42,891,410

Net result : US$9,271,128

Net Margin(%) : 5.37

Return on Equity(%) : 13.71

Leverage Ratio : 0.80 TIMES

Rating:

Credit Requested : NA

Credit Rating : + Sing $ 50 000 00

Credit Opinion : NA

COMPANY IDENTIFICATION

^{Subject Company : CONTINENTAL CHEMICAL CORPORATION PTE LTD}

^{Former Name : CONTINENTAL PACIFIC (S) PTE LTD}

^{Business Address : NO 2 SERAYA PLACE JURONG ISLAND}

^{Town : SINGAPORE}

^{Postcode : 627857}

^{County : -}

^{Country : Singapore}

^{Telephone : 6425 1360}

^{Fax : 6425 1232}

^{ROC Number : 199409372Z}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{CONTINENTAL PACIFIC (S) PTE LTD (DATE OF CHANGE OF NAME: 09/05/2002)}

SUMMARY

^{All amounts in this report are in: USD}

^{Legal Form : Pte Ltd}

^{Date Inc. : 22/12/1994}

^{Previous Legal Form : -}

^{Summary year : 31/12/2004}

^{Sales : 172,625,598}

^{Net Worth : 67,639,958}

^{Paid-Up Capital : 42,891,410}

^{Employees : 41}

^{Net Result : 9,271,128}

^{Auditor : PRICEWATERHOUSECOOPERS}

BASED ON ACRA'S RECORD AS AT 08/11/2006:

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 2,000,000 SGD 2,000,000.00}

^{ISSUED ORDINARY 73,695,922 USD 99,739,998.43}

^{PAID-UP ORDINARY - SGD 2,000,000.00}

^{PAID-UP ORDINARY - USD 99,739,998.43}

REFERENCES

^{CCMS Number : 702000944881}

^{Report Date : 15/11/2006}

^200606396

^{Update Date : 15/11/2006}

^{Credit Requested : NA}

^{Credit Opinion : NA}

^{Litigation : No}

^{Company status : TRADING}

^{Started : 22/12/1994}

PRINCIPAL(S)

^{TAN TIEW HEE S2513643H Managing Director}

DIRECTOR(S)

^{TAN TIEW HEE S2513643H Director}

^{Appointed on : 04/04/2003}

^{Street : 53 MIMOSA ROAD}

^#01-55

^{MIMOSA PARK}

^{Town : SINGAPORE}

^{Postcode : 808012}

^{Country : Singapore}

^{TAN TIEW HEE S2513643H Managing Director}

^{Appointed on : 11/04/2003}

^{Street : 53 MIMOSA ROAD}

^#01-55

^{MIMOSA PARK}

^{Town : SINGAPORE}

^{Postcode : 808012}

^{Country : Singapore}

^{DR CHAI KYU JOON DJ009369 Director}

^{Appointed on : 10/06/2004}

^{Street : 606 DONG 103}

^{HO MOK-DONG APT}

^{YANG CHUN-KU}

^{Town : SEOUL}

^{Postcode : -}

^{Country : Korea, Republic of}

^{CHANG SOW KUEN S1365694J Company Secretary}

^{Appointed on : 31/12/2004}

^{Street : 130 GEYLANG EAST AVENUE 1}

^#02-299

^{Town : SINGAPORE}

^{Postcode : 380130}

^{Country : Singapore}

FORMER DIRECTOR(S)

NG ENG SOON S1190958B

ROGER NG YONG GANG S1599975F

LIM THIN KONG FRANCIS S1835761E

ADDANKI GOPAL RAO S2618785J

HADIRAN SRIDJAJA D050535

JASIN SRIDJAJA D795282

HADISAN SRIDJAJA S2598934A

JOHANNES MUNANDAR SETIAWAN K840936

KIM JONG CHIL JR0147765

TEO JOO WOON S7026374B

EWE EE FOONG S2534316F

WONG CHEE SIONG S2538186F

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{CHEMICALS Code: 3970}

^{BASED ON ACRA'S RECORD AS AT 14/07/2006}

^{1) WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS; TRADING IN CHEMICALS}

^{& PETROCHEMICAL PRODUCTS & DERIVATES}

CHARGES

^{Date : 24/09/2005}

^{Comments : CHARGE NO: C200505777}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE MOSCOW NARODNY BANK LTD}

^{Date : 28/06/2006}

^{Comments : CHARGE NO: C200604177}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE (S) : ABN AMRO BANK N.V.}

^{Date : 29/05/2006}

^{Comments : CHARGE NO: C200603344}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE (S) : SOUTHERN BANK BHD}

^{Date : 16/03/2005}

^{Comments : CHARGE NO: C200501547}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : OVERSEA-CHINESE BANKING CORPORATION LTD}

^{Date : 30/05/2000}

^{Comments : CHARGE NO: 200002369 DISCHARGED}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE (S) : HL BANK}

^{Date : 09/03/2001}

^{Comments : CHARGE NO: 200101105}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE (S) : CITIBANK N.A.}

^{Date : 04/07/2001}

^{Comments : CHARGE NO: 200103003}

^{CHARGEE (S) : OVERSEAS UNION BANK LIMITED}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING (SGD)}

^{Date : 29/11/2001}

^{Comments : CHARGE NO: 200105868}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) : THE DEVELOPMENT BANK OF SINGAPORE LTD}

^{Date : 22/02/2002}

^{Comments : CHARGE NO: 200200891}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) : CITIBANK N.A.}

^{Date : 09/04/2003}

^{Comments : CHARGE NO: C200301563}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : BANGKOK BANK PUBLIC CO LTD}

^{Date : 13/06/2003}

^{Comments : CHARGE NO: C200302793}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : MALAYAN BANKING BHD}

^{Date :12/06/2003}

^{Comments : CHARGE NO: C200302700}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : KBC BANK N.V.}

^{Date : 05/02/2004}

^{Comments : CHARGE NO: C200400623}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGSELLSCHAFT}

^{Date : 02/12/2003}

^{Comments : CHARGE NO: C200305768 (DISCHARGE)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE: MOSCOW NARODNY BANK LTD}

PREMISES/PROPERTY INFORMATIONS

^{Date : 18/07/2006}

^{Tax rate : 10%}

^{Site Address : 2 SERAYA PLACE}

^{Town : SINGAPORE}

^{Postcode : 627857}

^{Country : Singapore}

^{Annual Value : S$1,205,000}

* TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

* TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER/OWNED BY COMPANY.

* FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

* ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

BANKERS

Ø ^{HL BANK}

Ø ^{CITIBANK NA}

Ø ^{OVERSEAS UNION BANK LIMITED}

Ø ^{DBS BANK LTD.}

Ø ^{BANGKOK BANK PUBLIC COMPANY LIMITED}

Ø ^{MALAYAN BANKING BHD}

Ø ^{KBC BANK N V}

Ø ^{RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT}

Ø ^{MOSCOW NARODNY BANK LIMITED}

^{Ø OVERSEA-CHINESE BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{CONTINENTAL CHEMICAL HOLDINGS LTD 75,695,922 Company}

^{Street : BANK OF BERMUDA BUILDING}

^{6 FRONT STREET}

^{Town : HAMILTON HM11}

^{Postcode : -}

^{Country : Bermuda}

FORMER SHAREHOLDER(S)

STARMAX INTERNATIONAL LIMITED 500,000

GLOBECHEM INTERNATIONAL CO LIMITED 2,000,000

HOLDING COMPANY

CONTINENTAL CHEMICAL HOLDINGS LTD UF32508G % : 100

SUBSIDIARY(IES)

CONTINENTAL PETROCHEMICALS (SINGAPORE) PTE LTD SINGAPORE

CONTINENTAL PLASTICIZERS (SINGAPORE) PTE LTD SINGAPORE

CONTINENTAL RESEARCH & DEVELOPMENT PTE LTD SINGAPORE

CONTINENTAL PACIFIC (HONG KONG) PTE LIMITED HONG KONG

CONTINENTAL SPECIALTIES (GUANGZHOU) CO LTD CHINA

CONTINENTAL SPECIALTIES (THAILAND) CO LTD THAILAND

PT CONTINENTAL SOLVINDO INDONESIA

GLOBECHEM INTERNATIONAL COMPANY LIMITED MAURITIUS

CONTINENTAL PETROCHEMICAL (ZHUHAI) COMPANY LIMITED CHINA

CONTINENTAL SPECIALTIES HOLDING (THAILAND) COMPANY LIMITED (CSHT) THAILAND

PAYMENT HISTORY AND EXPERIENCES

Trade Morality : AVERAGE

Liquidity : SUFFICIENT

Payments : REGULAR

Trend : LEVEL

Financial Situation : AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in: USD}

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 09/03/2006}

^{Balance Sheet Date: 31/12/2004 31/12/2003}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 40,139 91,203}

^{Investments 62,022,665 47,627,517}

^{Total Fixed Assets: 62,062,804 47,718,720}

^{Inventories: 1,359,686 1,884,471}

^{Receivables: 44,598,834 50,059,936}

^{Cash, Banks, Securities: 13,576,101 10,297,002}

^{Other current assets: 32,213 241,834}

^{Total Current Assets: 59,566,834 62,483,243}

^{TOTAL ASSETS: 121,629,638 110,201,963}

^{--- LIABILITIES ---}

^{Equity capital: 42,891,410 42,891,410}

^{Profit & loss Account: 24,748,548 15,477,420}

^{Total Equity: 67,639,958 58,368,830}

^{L/T deferred taxes: 10,938 10,938}

^{Other long term Liab.: 771 9,283}

^{Total L/T Liabilities: 11,709 20,221}

^{Trade Creditors: 23,579,715 29,688,940}

^{Short term liabilities: 9,264 8,569}

^{Due to Bank: 23,968,900 19,426,361}

^{Provisions: 878,417 1,182,841}

^{Other Short term Liab.: 5,224,016 1,181,155}

^{Prepay. & Def. charges: 317,659 325,046}

^{Total short term Liab.: 53,977,971 51,812,912}

^{TOTAL LIABILITIES: 53,989,680 51,833,133}

^{--- PROFIT & LOSS ACCOUNT ---}

^{Net Sales 172,625,598 173,010,373}

^{Purchases,Sces & Other Goods: 158,828,946 160,692,984}

^{Gross Profit: 13,796,652 12,317,389}

^{Result of ordinary operations 10,469,923 8,417,187}

^{NET RESULT BEFORE TAX: 9,896,191 8,376,079}

^{Tax : 625,063 831,574}

^{Net income/loss year: 9,271,128 7,544,505}

^{Interest Paid: 573,732 41,108}

^{Depreciation: 42,083 61,118}

^{Directors Emoluments: 252,210 318,382}

^{Wages and Salaries: 1,353,418 1,498,968}

^{Financial Income: 102,177 52,058}

RATIOS

^{31/12/2004 31/12/2003}

^{Turnover per employee: 4210380.44 4219765.20}

^{Net result / Turnover(%): 0.05 0.04}

^{Stock / Turnover(%): 0.01 0.01}

^{Net Margin(%): 5.37 4.36}

^{Return on Equity(%): 13.71 12.93}

^{Return on Assets(%): 7.62 6.85}

^{Net Working capital: 5588863.00 10670331.00}

^{Cash Ratio: 0.25 0.20}

^{Quick Ratio: 1.08 1.16}

^{Current ratio: 1.10 1.21}

^{Receivables Turnover: 93.01 104.16}

^{Leverage Ratio: 0.80 0.89}

Net Margin : (100*Net income loss year)/Net sales

Return on Equity : (100*Net income loss year)/Total equity

Return on Assets : (100*Net income loss year)/Total fixed assets

Net Working capital : Total current assets-Total short term liabilities

Cash Ratio : Cash Bank securities/Total short term liabilities

Quick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilities

Current ratio : Total current assets/Total short term liabilities

Inventory Turnover : (360*Inventories)/Net sales

Receivables Turnover : (Receivable*360)/Net sales

Leverage Ratio : Total liabilities/(Total equity-Intangible assets)

FINANCIAL COMMENTS

THE FINANCIAL CONDITION OF THE COMPANY WAS DEEMED TO BE FAIR TO STABLE IN

VIEW OF THE FOLLOWING:

NET WORTH:

THE BALANCESHEET WAS FAIRLY SOUND WITH TOTAL EQUITY IMPROVING BY 15.88% AMOUNTING TO US$67,639,958 (2003: US$58,368,830). THIS WAS CONTRIBUTED BY HIGHER ACCUMULATED PROFITS BROUGHT FORWARD OF US$24,748,548 (2003: US$15,477,420) SURGING BY 59.90%.

LEVERAGE:

THE LEVERAGE RATIO HAD GONE DOWN AND REMAINED CONSERVATIVE AT 0.80 TIMES (2003: 0.89 TIMES), INDICATING THAT THE TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.

IN THE SHORT TERM, TRADE CREDITORS TOTALLED US$23,579,715 (2003: US$29,688,940), DECREASING BY 20.58%. AMOUNT DUE TO BANKS OF US$23,968,900 (2003: US$19,426,361) HAD GONE UP BY 23.38%, AND THEY ARE SECURED BY PLEDGED BANK DEPOSITS OF US$9,476,312 (2003: US$8,544,705).

OTHER SHORT TERM LIABILITIES OF US$5,224,016 (2003: US$1,181,155) REFERRED TO:

* OTHER PAYABLES TO THIRD PARTIES OF US$376,959 (2003: US$208,627)

* OTHER PAYABLES TO HOLDING CORPORATION OF US$2,555,913

(2003: US$141,239)

* OTHER PAYABLES TO SUBSIDIARIES OF US$2,291,144 (2003: US$831,289)

OTHER LONG TERM LIABILITIES OF US$771 (2003: US$9,283) REPRESENTED FINANCE LEASE LIABILITIES.

LIQUIDITY:

THE OVERALL LIQUIDITY OF THE COMPANY WAS FAIRLY HEALTHY BUT HAD DETERIORATED. BOTH THE QUICK AND CURRENT RATIOS HAD GONE DOWN AND WERE BARELY SUFFICIENT AT 1.08 TIMES (2003: 1.16 TIMES) AND 1.10 TIMES (2003: 1.21 TIMES) RESPECTIVELY.

THIS WAS IN TANDEM WITH THE NET WORKING CAPITAL, WHICH ALSO LOWERED NOTABLY BY 47.62% ACCOUNTING FOR US$5,588,863 (2003: US$10,670,331). IN ADDITION, CASH AND CASH EQUIVALENTS ROSE BY 31.85% TOTALLING US$13,576,101 (2003: US$10,297,002).

PROFITABILITY:

REVENUE FOR FY2004 DECREASED MARGINALLY BY 0.22% AMOUNTING TO US$172,625,598 (2003: US$173,010,373). HOWEVER, NET INCOME HAD RISEN BY 22.89% TOTALLING US$9,271,128 (2003: US$7,544,505). THIS MIGHT BE ATTRIBUTABLE TO A NOTABLE DROP IN THE SELLING AND DISTRIBUTION EXPENSES OF US$816,482 (2003: US$1,235,508).

AS A RESULT, NET MARGIN STOOD POSITIVELY AT 5.37% (2003: 4.36%).

DEBT SERVICING:

DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT

NET WORKING CAPITAL AND IF TRADE RECEIVABLES WERE FORTHCOMING.

IN ADDITION, AVERAGE COLLECTION PERIOD HAS SHORTENED TO 93 DAYS FROM THE PRIOR FINANCIAL YEAR OF 104 DAYS.

NOTES TO THE FINANCIAL STATEMENTS:

CONTINGENT LIABILITIES:

2004 2003

US$ US$

(A) PERFORMANCE GUARANTEE ON PURCHASE

CONTRACT GIVEN TO A SUPPLIER 500,000 500,000

(B) THE COMPANY HAD PROVIDED GUARANTEES TO BANKS FOR CERTAIN OF ITS SUBSIDIARIES FOR THEIR INDEBTEDNESS TO SECURE BANKING FACILITIES IF APPROXIMATELY US$27,180,000 (2003: NIL).

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 22/12/1994 AS A LIMITED PRIVATE COMPANY AND WAS FORMERLY KNOWN AS "METRO PACIFIC CORPORATION PTE LTD".

SUBSEQUENTLY ON 28/12/2000, SUBJECT CHANGED TO ITS NAMESTYLE OF "CONTINENTAL PACIFIC (SINGAPORE) PTE LTD". ON 09/05/2002, SUBJECT AGAIN CHANGED TO ITS PRESENT NAMESTYLE OF "CONTINENTAL CHEMICAL CORPORATION PTE LTD".

THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF CONTINENTAL CHEMICAL HOLDINGS LTD, INCORPORATED IN BERMUDA.

AS AT 08/11/2006, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL COMPRISING OF 2,000,000 SHARES OF A VALUE OF S$2,000,000 AND 73,695,922 SHARES OF A VALUE OF US$99,739,998.

PRINCIPAL ACTIVITIES:

SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:

1) WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS; TRADING IN CHEMICALS

& PETROCHEMICAL PRODUCTS & DERIVATES

2) OTHER INVESTMENT HOLDINGS COMPANIES

DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THOSE OF THE IMPORT, EXPORT AND DISTRIBUTION OF INDUSTRIAL CHEMICALS AND THE PROVISION OF RELATED CHEMICAL FORMULATION SUPPORTS.

FROM THE RESEARCH CONDUCTED, THE FOLLOWING INFORMATION WAS GATHERED:

THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: CHEMICALS.

SUBJECT HEADQUARTERED IN SINGAPORE, IS ONE OF ASIA'S LEADING MANUFACTURERS OF INTERMEDIATE PETROCHEMICALS AND SPECIALTY RESINS. THE CONTINENTAL CHEMICAL GROUP PRODUCES THROUGH ITS OWN PRODUCTION FACILITIES AND THROUGH TOLLING OPERATIONS, A VARIETY OF PLASTICIZERS AND OTHER INTERMEDIATE CHEMICALS TOGETHER WITH SPECIALTY CHEMICALS SUCH AS INDUSTRIAL SOLVENTS AND RESINS FOR THE COATING, CASTING, ADHESIVE AND TEXTILE INDUSTRIES.

SUBJECT PROCURES ITS CHEMICALS FROM ASIA REGION AND SUPPLIES MAINLY TO OVERSEAS MARKETS.

SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:

* LEADING PRODUCER OF INTERMEDIATE CHEMICALS & SPECIALTY RESINS IN ASIA

* LARGEST PRODUCER OF PHTHALIC ANHYDRIDE (PS) AND PLASTICIZERS IN

SOUTHEAST ASIA

PRODUCTS:

* INTERMEDIATE CHEMICALS

* WATER BASED RESINS

* SOLVENT BASED RESINS

* UNSATURATED POLYESTER RESINS

* END USES

PURCHASES:

* IMPORTS (%): -

* TERMS OF IMPORT: LETTER OF CREDITS, ETC

* IMPORT COUNTRIES: ASIA REGION

MARKETS:

* LOCAL (%): LESS THAN 40

* TERMS SALES: LETTER OF CREDITS, ETC

* EXPORT(%): MORE THAN 60

* TERMS OF EXPORT: LETTER OF CREDITS, ETC

* EXPORT COUNTRIES: USA, EUROPE, MIDDLE-EAST, AFRICA, AUSTRALIA,

THAILAND, GREATER CHINA, SOUTH ASIA AND THE REST OF ASIA PACIFIC

SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY:

* SINGAPORE CHINESE CHAMBERS OF COMMERCE & INDUSTRY

NO OTHER UPDATED TRADE INFORMATION WAS GATHERED ON 15/11/2006.

SUBJECT WAS ONLY WILLING TO VERIFY THE BUSINESS ADDRESS AND CONTACT NUMBERS.

NO. OF EMPLOYEES (31 DECEMBER):

* COMPANY - 2004: 41 (2003: 40; 2002: 34; 2001: 21)

REGISTERED OFFICE AND BUSINESS ADDRESS:

NO 2 SERAYA PLACE

JURONG ISLAND

SINGAPORE 627857

DATE OF CHANGE OF ADDRESS: 10/06/2002

-- OWNED PREMISE

WEBSITE:

* http://www.continentalcorp.ws

EMAIL:

* cccpl@continentalcorp.ws

MANAGEMENT

THE DIRECTORS IN OFFICE AT THE TIME OF THIS REPORT ARE:

1) DR CHAI KYU JOON, A SOUTH KOREAN

- BASED IN KOREA

2) TAN TIEW HEE, A SINGAPOREAN

- HOLDS NO OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE

SINGAPORE'S COUNTRY RATING 2006

RATING: A1

INVESTMENT GRADE

IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.

ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.

ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE'S STRONG FINANCIAL CONDITION.

AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITSPOSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR'S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.

ASSETS

- ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR

ROLE IN ITS PERFORMANCE.

- ONE OF ASIA'S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.

- WORKFORCE'S EDUCATION AND SKILL LEVEL IS VERY HIGH.

- A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING

COMPANY, TEMASEK.

- THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.

- GREAT POLITICAL STABILITY.

WEAKNESSES

- ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.

- MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER

OTHER ASIAN ECONOMIES

- REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM

MODERNIZATION.

- AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.

SOURCES: COFACE COPYRIGHT. ALL RIGHTS RESERVED.

@RATING COUNTRY RATING DEFINITION

INVESTMENT GRADE

A1 - THE STEADY POLITICAL AND ECONOMIC ENVIRONMENT HAS POSITIVE EFFECTS ON

AN ALREADY GOOD PAYMENT RECORD OF COMPANIES. VERY WEAK DEFAULT PROBABILITY.

A2 - DEFAULT PROBABILITY IS STILL WEAK EVEN IN THE CASE WHEN ONE COUNTRY'S

POLITICAL AND ECONOMIC ENVIRONMENT OR THE PAYMENT RECORD OF COMPANIES

IS NOT AS GOOD AS IN A1-RATED COUNTRIES.

A3 - ADVERSE POLITICAL OR ECONOMIC CIRCUMSTANCES MAY LEAD TO A WORSENING

PAYMENT RECORD THAT IS ALREADY LOWER THAN THE PREVIOUS CATEGORIES,

ALTHOUGH THE PROBABILITY OF A PAYMENT DEFAULT IS STILL LOW.

A4 - AN ALREADY PATCHY PAYMENT RECORD COULD BE FURTHER WORSENED BY A

DETERIORATING POLITICAL AND ECONOMIC ENVIRONMENT. NEVERTHELESS, THE

PROBABILITY OF A DEFAULT IS STILL ACCEPTABLE.

SPECULATIVE GRADE

B - AN UNSTEADY POLITICAL AND ECONOMIC ENVIRONMENT IS LIKELY TO AFFECT

FURTHER AN ALREADY POOR PAYMENT RECORD.

C - AN VERY UNSTEADY POLITICAL AND ECONOMIC ENVIRONMENT COULD DETERIORATE AN

ALREADY BAD PAYMENT RECORD.

D - THE HIGH RISK PROFILE OF A COUNTRY'S ECONOMIC AND POLITICAL ENVIRONMENT

WILL FURTHER WORSEN A GENERALLY VERY BAD PAYMENT RECORD.

WHOLESALE TRADE SECTOR

PAST PERFORMANCE

WITH THE GROWTH IN NON-OIL RE-EXPORTS AND THE RISE IN RETAIL SALES, THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY A ROBUST 15% IN 1Q2006, UP FROM THE

12% GAIN IN 4Q2005.

DOMESTIC WHOLESALE TRADE INDEX

FOLLOWING SEVEN QUARTERS OF DOUBLE-DIGIT GROWTH, THE OVERALL DOMESTIC WHOLESALE TRADE INDEX MODERATED TO 7.5% IN 1Q2006. EXCLUDING PETROLEUM, THE INDEX ROSE BY 14.2% OVER THE SAME PERIOD LAST YEAR.

ON THE OTHER HAND, DOMESTIC WHOLESALE OF PETROLEUM & PETROLEUM PRODUCTS FELL BY 2.1% IN 1Q2006, THE FIRST DECLINE SINCE 1Q2004.

AT CONSTANT PRICES, THE OVERALL INDEX DECLINED BY 4.4% IN 1Q2006 OVER 1Q2005, MAINLY DUE TO LOWER ACTIVITY IN CHEMICAL AND PETROLEUM SECTORS. EXCLUDING PETROLEUM, IT WAS 7.9% HIGHER THAN A YEAR AGO.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF 16.5% COMPARED TO 4Q2005. EXCLUDING PETROLEUM, THE INDEX WERE LOWER BY 8.9%.

FOREIGN WHOLESALE TRADE INDEX

AS COMPARED TO 1Q2005, THE OVERALL FOREIGN WHOLESALE TRADE IN 1Q2006 ROSE BY 15.4%. EXCLUDING PETROLUEM, THE INDEX EXPANDED BY 11.5%.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE MARGINALLY BY 0.9% IN 1Q2006 OVER A YEAR AGO. EXCLUDING PETROLEUM, IT WAS UP BY 7.6%.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF 9.4% FOLLOWING GROWTH FOR THREE CONSECUTIVE QUARTERS. EXCLUDING PETROLEUM, THE INDEX WERE LOWER BY 8.6%.

AHEAD

WHOLESALERS PREDICTS POSITIVE BUSINESS CONDITIONS FOR THE PERIOD ENDING DECEMBER 2006. THOSE DEALING IN FURNITURE & FURNISHINGS, COSMETICS & TOILETRIES, JEWELLERY & WATCHES, HOUSEHOLD ELECTRICAL APPLIANCES & EQUIPMENT, ELECTRONIC COMPONENTS, SCIENITIFIC & PRECISION EQUIPMENT, ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD. EXTRACTED FROM : MINISTRY OF TRADE AND INDUSTRY, SINGAPORE DEPARTMENT OF STATISTICS TODAY .

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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