MIRA INFORM REPORT

Report Date :

23^rd February, 2007

IDENTIFICATION DETAILS

Name :	CHEUNG HING CORPORATION LTD

Registered Office :	4/F, Wai Hing Bldg., 146-148 Prince Edward Road, Kowloon, Hong Kong

Country :	Hong Kong

Date of Incorporation :	30-4-1999

Com. Reg. No.:	673982

Legal Form :	Private

Line of Business :	Traders of timber

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

NAME & ADDRESS

CHEUNG HING CORPORATION LTD.

4/F, WAI HING BLDG., 146-148 PRINCE EDWARD ROAD, KOWLOON, HONG KONG.

TEL : 852 23812547

FAX : 852 23971790

EXECUTIVE SUMMARY

INCORPORATION DATE : 30-4-1999

REGISTRATION NO. : 673982

REGISTERED LEGAL FORM : PRIVATE

CHIEF EXECUTIVE : CHENG PUI CHUNG (DIRECTOR)

STAFF STRENGTH : 12

AUTHORIZED CAPITAL : HKD 10M = 10M SHARES @ HKD 1.-

PAID-UP CAPITAL : HKD 10M

BUSINESS LINE : TRADING OF TIMBER

TURNOVER : N/A (AS OF DEC. 31, 2004. )

EQUITIES : N/A (AS OF DEC. 31, 2004. )

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : MODERATE AMOUNT

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : HKD 7.75715 = USD1 AS OF 2006-04-14

The correct address of SC is the heading one instead of the address given by you.

SC is a private limited company registered under incorporation file no. 673982 on 30-4-1999.

SC's shareholders & directors are shown to be as follows:

Shareholders (as at 30-4-2005) Number of shares held

Teh Choo Ngang 3,200,000

Cheng Pui Chee alais Apipatana Chetta 3,000,000

Apipatana Marut 1,900,000

Cheng Pui Chung 1,900,000

------------

10,000,000

========

Directors (as at 30-4-2005)

Cheng Pui Chung / G152904(7)

Teh Choo Ngang / E135811(5)

Cheng Pui Chee / E377725(5)

The above registration information is based on SC's annual return filed at Companies Registry within the last 2 years.

No material change or amendment regarding SC has been traced & noted within last 2 years.

Total number of employees: 12.

Location: Maintaining its office at the heading business address, which occupies a gross area of 1,500 square feet at a residential building in a residential district.

Condition inside the premises during our visit: Normal.

Office/factory layout: Standard.

This section will contain the civil litigations & winding-up petitions filed against SC for the last 6 years (as stored in our database), and the mortgage/charge filed by SC for the last 2 years. In Hong Kong, creation of such mortgages/charges by an unlimited co is not required to be registered in the public records.

Civil litigation/winding-up petitions: None in our database.

Mortgage/charge record(s): (X) see below ( ) see per attached

Creation date : 28-6-2004

Charger(s) : SC

Chargee(s) : The Bank of Tokyo-Mitsubishi UFJ Ltd.

Secured amount : ANS

Charge particulars : Security Over Deposits (Deposit: CAD949,497.55)

Creation date : 21-7-2004

Charger(s) : SC

Chargee(s) : Dah Sing Bank Ltd.

Secured amount : ANS

Charge particulars: Security Over Deposits (Deposit: US$142,179.10)

Creation date : 5-11-2004

Charger(s) : SC

Chargee(s) : Wing Hang Bank Ltd.

Secured amount : ANS

Charge particulars : Letter of Pledge & Set-off Agreement (Deposit: $1.5M)

Creation date : 28-12-2004

Charger(s) : SC

Chargee(s) : Hang Seng Bank Ltd.

Secured amount : ANS

Charge particulars : Running Deed of Charge

Creation date : 18-1-2005

Charger(s) : SC

Chargee(s) : Asia Commercial Bank Ltd.

Secured amount : ANS

Charge particulars : Charge on Cash Deposits

Creation date : 31-3-2005

Charger(s) : SC

Chargee(s) : Asia Commercial Bank Ltd.

Secured amount : ANS

Charge particulars : Mortgage (11/F, Union Park Centre, 771-775 Nathan

Road, Kowloon, HK.)

Creation date : 29-9-2005

Charger(s) : SC

Chargee(s) : DBS Bank (HK) Ltd.

Secured amount : ANS

Charge particulars : Charge on Cash Deposits to secure liabilities

Mortgage Index:

Year(s) in which mortgage registration(s) are filed: 1999 - 2005

Year(s) in which mortgage satisfaction record(s) are filed: 2000, 2002, 2004

Cheng Pui Chung, director:

- In his mid 40's

- Embarked upon his career to present field as a junior salesman in his 20's

Currently active in SC's day-to-day operations & is responsible for its management.

Registered residential address: Same as heading business address.

Credit history check : This refers to a check of our database whether the said person has

been involved in any of the following records stored by us within the last

6 years:

Civil litigation as defendants : None in our database

Bankruptcy/winding-up petitions : None in our database

Delinquent payment records : None in our database

Debt collection records : No overdue amount owed by the said person was placed to us for

collection

Teh Choo Ngang, director:

- In his early 50's

- Embarked upon his career to present field as a junior salesman in his 20's

Currently active in SC's day-to-day operations & is responsible for its management.

Registered residential address: 16/F, 10C, Lai Wan Road, Kowloon, HK.

Credit history check : This refers to a check of our database whether the said person

has been involved in any of the following records stored by us within the

last 6 years:

Civil litigation as defendants : None in our database

Bankruptcy/winding-up petitions : None in our database

Delinquent payment records : None in our database

Debt collection records : No overdue amount owed by the said person was placed to us for

collection

Ownership background appraisal:

Rating: 3 Obtained scores : 58 (see explanatory notes below)

Keys : 1 : scores 81-100 : Excellent

2 : scores 61-80 : Good

3 : scores 46-60 : Average

4 : scores 21-45 : Fair

5 : scores 01-20 : Poor

The rating indicates the personal financial & operational strength of SC's major principals. It is calculated from a composite of scores obtained from the following 5 factors which carry equal weight in our analysis:

Personal financial strength, credit history & trade reputation, business experience & track record, market connection and management skill.

Business categories:

SC is engaged in trading of timber.

Items available include teakwood, pyinkado, padauk, standing timber, saw logs, yuan timber & rosewood.

Principal purchases:

Major types of sourcing : Raw materials

Local--type of suppliers : Nil

Buying terms : Nil

Overseas--supplying countries : SE Asia & Myanmar

Buying terms : L/C, T/T & D/P

Principal market :

Local--type of customers : Furniture manufacturers

Selling terms : COD & credit of 14 to 30 days

Overseas--buying countries : PR China

Selling terms : L/C, T/T & D/P

Jointly occupying the premises with the below mentioned affiliate.

Affiliate(s):

Company name : Cheung Hing Timber Co. Ltd.

Year established : 1992

Business nature : Similar to SC

Address : Same as heading business address

Turnover : NA

Civil litigation & winding-up petition records : None in our database

Overall payment appraisal :

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment records and our debt collection record concerning SC.

Trade payment experience : SC did not provide any name of trade/service suppliers and we have no other sources to conduct the enquiry at present.

Delinquent payment record : None in our database.

Debt collection record : No overdue amount owed by SC was placed to us for collection within the last 6 years.

Banking relations are maintained principally with:

- HSBC

- Hang Seng Bank Ltd.

- Wing Hang Bank Ltd.

- DBS Bank (HK) Ltd.

- Asia Commercial Bank Ltd.

- KBC Bank N.V.

- Bank of India

- Industrial & Commercial Bank of China (Asia) Ltd.

- The Bank of Tokyo-Mitsubishi UFJ Ltd.

- Dah Sing Bank Ltd.

During our report preparation, the principals could not be contacted while the staff members hesitated to release financial information without the principals' consent.

As per current co. search, total amount of indebtedness of SC in respect of all mortgages and charges, which are required to be registered with Companies Registry as at 30-4-2005, was NA.

SC is considered small-sized in its line locally with acceptable base to meet its normal dealings. Credit up to moderate amount may be considered.

NOTES:

Current land search indicates that SC owns the following premises:

- Address: Unit D, 23/F, Bijou Court, No.171 Prince Edward Road West, Mongkok, Kowloon, HK.

- Owner(s): SC

- Date of purchase & consideration: 18-8-2000 / HKD 4,945,000

- Date of mortgage & secured amount: 19-9-2000 / ANS

- Mortgagee: Hang Seng Bank Ltd.

- Address: 11/F, Union Park Centre, 771 Nathan Road, Mongkok, Kowloon, HK.

- Owner(s): SC

- Date of purchase & consideration: 31-3-2005 / HKD 7,930,000

- Date of mortgage & secured amount: 31-3-2005 / ANS

- Mortgagee: Asia Commercial Bank Ltd.

Current land search indicates that SC was involved in the following property transaction:

- Address: Unit 9, 3/F, Bijou Court, 171 Prince Edward Road West, Mongkok, Kowloon, HK. (carparking space)

- Assignor: SC

- Assignee: Polycom Ltd.

- Date of disposal & amount: 15-5-2004 / HKD 780,000

Note: The premises was formerly purchased by SC on 26-10-2000 at a consideration of

HKD 769,000.

Partial registration information regarding Cheung Hing Timber Co. Ltd. is as follows:

Date of incorporation: 23-12-1992

Authorized capital: HKD 12M divided into 12M shares @ HKD 1.-

Paid-up capital: HKD 6M

Shareholders (as at 23-12-2005) Number of shares held

*Cheng Pui Chee alias Apipatana Chetta 1,875,000

Apipatana Marut 1,125,000

*Goh Mee Gnoh 1,000,000

*Cheng Pui Chung 500,000

*Tay Choon Nan 500,000

*Teh Choo Ngang 500,000

Poon Lap Man 500,000

Directors (as at 23-12-2005)

*Also directors

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

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions