MIRA INFORM REPORT

Report Date :

26.02.2007

IDENTIFICATION DETAILS

Name :	MEIDA NYLON CO. LTD.

Registered Office :	Rm 2203, 22/F, West Tower, Shun Tak Centre, 168-200 Connaught Road Central

Country :	Hong Kong

Date of Incorporation :	11-7-2003

Com. Reg. No.:	853007

Legal Form :	Private Limited Company

Line of Business :	Engaged in manufacturing & export of nylon products.

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 :	Usually correct

Litigation :	Clear

name & address

MEIDA NYLON CO. LTD.

RM 2203, 22/F, WEST TOWER, SHUN TAK CENTRE,

168-200 CONNAUGHT ROAD CENTRAL, HONG KONG.

TEL: 852 28583266

FAX: 852 28583193

EXECUTIVE SUMMARY

INCORPORATION DATE : 11-7-2003

REGISTRATION NO. : 853007

REGISTERED LEGAL FORM : PRIVATE LIMITED CO.

CHIEF EXECUTIVE : LIANG WEIDONG (DIRECTOR)

STAFF STRENGTH : 7

AUTHORIZED CAPITAL : HKD0.1M = 0.1M SHARES @ HKD1.-

PAID-UP CAPITAL : HKD0.1M

BUSINESS LINE : MANUFACTURE & EXPORT OF NYLON PRODUCTS

TURNOVER : N/A (AS OF DEC. 31, 2005)

EQUITIES : N/A (AS OF DEC. 31, 2005)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : MODERATE AMOUNT

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : HKD 7.81361 = USD1 AS OF 2007-02-13

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

M - million

HKD – Hong Kong Dollars

SC is a private limited company registered under incorporation file no. 853007 on 11-7-2003.

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

Shareholders (as at 16-7-2006) Number of shares held

Guangdong Xinhui Meida Nylon Co. Ltd. 98,000

Liang Weidong 1,000

Zhang Leile 1,000

---------

100,000

======

Directors (as at 16-7-2006)

Liang Weidong / WO1275362

Zhang Leile / W01275361

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.

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) : None filed within the last 2 years as per our current search.

Mortgage Index:

Year(s) in which mortgage registration(s) are filed: 2004

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

SC is a subsidiary of Guangdong Xinhui Meida Nylon Co. Ltd., a public co. listed on the Shenzhen Stock Exchange with stock code 000782 * whose partial information is as follows:

* listed on 19-6-1997

Year established : 1986

Registered/business address : Shangqiankou Jianghui Road, Xin Hui City, Guangdong Province, PR China.

Business line : It is engaged in manufacturing & sales of nylon products in PR China. Its products are sold to more than 20 provinces & cities in PR China. In 1997, it was successfully listed on the Shenzhen Stock Exchange.

No. of employees : 3,500

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

Turnover : CNY1,771M (year ended 31-12-2005)

Partial financial data of the said company:

Items Fiscal yr 31-12-2005 Fiscal yr 31-12-2004

Current assets : CNY703M CNY878M

Current liabilities : CNY927M CNY987M

Fixed assets & non-current assets : CNY1,348M CNY1,181M

Tangible worth/(net deficit) : CNY1,124M CNY1,072M

Turnover : CNY1,771M CNY1,755M

Net income/(net loss) : CNY17M CNY95M

Liang Weidong, director:

- Born in 1966

- He is a Chinese mainlander

- He is a vice president of Guangdong Xinhui Meida Nylon Co. Ltd., SC's parent

- Currently residing in PR China

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

Zhang Leile, director:

- In his late 30's

- He is a Chinese mainlander

- He is a vice general manager of Guangdong Xinhui Meida Nylon Co., Ltd., SC's parent

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

Ownership background appraisal:

Rating : 3 Obtained scores : 60 (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 manufacturing & export of nylon products.

Items available include mixed fabric, oxford cloth, pongee, taslon, taffeta glace & satin.

Production is assigned to its affiliated factory/joint venture factory located at Jiangmen, Guangdong Province, PR China (reportedly employing 1,800 workers).

A portion is sold under its own brand(s) "Jinfan".

Achievement:

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

- ISO 9001

Principal purchases :

Major types of sourcing : Raw materials

Local--type of suppliers : Nil

Buying terms : Nil

Overseas--supplying countries : PR China, Thailand, Japan, USA & Europe

Buying terms : L/C & T/T

Principal market :

Local--type of customers : Nil

Selling terms : Nil

Overseas--buying countries : PR China, Japan, Taiwan & other SE Asian countries

Selling terms : L/C & T/T

Total number of employees : 7.

Location : Maintaining its office at the heading business address which occupies a gross area of 1,200 square feet at a commercial building in a commercial district.

The premises is rented.

SC is not known to have any subsidiary at present.

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:

- Bank of China (HK) Ltd.

- Bank of Communications Co. 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 10-7-2006 was nil.

SC is considered a normally advancing concern with steady customers and good base to meet its trade engagements. Credit in the range of moderate amount can be considered.

-- Asset Tracing --

Upon our current investigation, our database & sources consulted indicate that SC was not involved in any property transaction (both purchase & disposal) in Hong Kong for the last 6 years.

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