MIRA INFORM REPORT

Report Date :

23.04.2008

IDENTIFICATION DETAILS

Name :	DESMON (cHINA) Co., Ltd.
Registered Office :	Baishigang Village, Changping Town, Dongguan, Guangdong Province, 523560 Pr
Country :	China
Financials (as on) :	31.12.2007
Date of Incorporation :	15.01. 2004
Com. Reg. No.:	441900400063333
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturing and Selling Heat Preservation Boards.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 50,000
Status :	Small Company
Payment Behaviour :	No Complaints
Litigation :	Clear

name & address

DESMON (cHINA) Co., Ltd.

baiSHIGANG VILLAGE, CHANGPING TOWN,

DONGGUAN, GUANGDONG PROVINCE, 523560 PR CHINA.

TEL: 86 (0) 769-83501291 FAX: 86 (0) 769-83501293

EXECUTIVE SUMMARY

INCORPORATION DATE : january 15, 2004

REGISTRATION NO. : 441900400063333

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise

CHIEF EXECUTIVE : MR. chen gangjie (CHAIRMAN)

STAFF STRENGTH : 41

REGISTERED CAPITAL : HKD 8,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 7,350,000 (AS OF DEC. 31, 2007)

EQUITIES : CNY 7,540,000 (AS OF DEC. 31, 2007)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 50,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.98 = USD 1

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

CNY - China Yuan Renminbi

SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on January 15, 2004.

Company Status: Wholly foreign-owned enterprise

This form of business in PR China is defined as a legal person. It is a limited co. established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investor may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.

SC’s registered business scope includes manufacturing and selling high-grade building hardware, plumbing equipment and hardware.

SC is mainly engaged in manufacturing and selling heat preservation boards.

Mr. Chen Gangjie has been legal representative and chairman of SC since 2004.

SC is known to have approx. 41 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Dongguan. Our checks reveal that SC rents the total premise about 1,500 square meters.

http://www.desmon.com.cn The design is professional and the content is well organized. At present it is in both Chinese and English versions.

Email: sales@desmon.com.cn

No significant events or changes were found during our checks with the local Administration for Industry and Commerce.

MAIN SHAREHOLDERS:

Name % of Shareholding

Desmon (Hong Kong) Co., Ltd.

100

l Legal representative and chairman:

Mr. Chen Gangjie , Hong Kong citizen, in his 50’s with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2004 to present Working in SC as chairman and legal representative.

SC is mainly engaged in manufacturing and selling heat preservation boards.

SC’s products mainly include “wave” panel, round corners & round edges, doors, shelving, panel system and accessories, etc.

SC has developed a complete combined type cold storage production system. Cargo often includes fruits and vegetables, meat, aquatic products, dairy products and seed for example, all of which remain fresh within refrigerated or frozen containers.

SC sources its materials 100% from domestic market. SC sells 100% of its products in domestic market.

The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include Check, T/T and Credit of 30-60 days.

*Major Customer:

==============

Beijing Hotel Equipment Co., Ltd.

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 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.

Bank of China Changping Dongguan Branch Changping Sub-branch.

AC#818228959008091001

Relationship: Normal.

Balance Sheet (as of Dec. 31, 2007)

Unit: CNY’000

Cash & bank	670
Inventory	3,610
Accounts receivable	650
Other receivables	1,060
Other current assets	0
	------------------
Current assets	5,990
Fixed assets	2,130
Fixed assets net value	1,450
Projects under construction	0
Long term investment	0
Other assets	590
	------------------
Total assets	8,030
	=============
Short loans	0
Accounts payable	470
Other payable	0
Other current liabilities	20
	------------------
Current liabilities	490
Long term liabilities	0
	------------------
Total liabilities	490
Equities	7,540
	------------------
Total liabilities & equities	8,030
	=============

Income Statement (as of Dec. 31, 2007)

Unit: CNY’000

Turnover	7,350
Cost of goods sold	6,550
Sales expense	7
Management expense	1,030
Finance expense	2
Profit before tax	-230
Less: profit tax	0
Profits	-230

Important Ratios

=============

	as of Dec. 31, 2007
*Current ratio	12.2
*Quick ratio	4.86
*Liabilities to assets	0.06
*Net profit margin (%)	-3.13
*Return on total assets (%)	-2.86
*Inventory /Turnover ×365	179 days
*Accounts receivable/Turnover ×365	32 days
*Turnover/Total assets	0.92
* Cost of goods sold/Turnover	0.89

PROFITABILITY: FAIR

l The turnover of SC appears average in its line.

l SC’s net profit margin is fair.

l SC’s return on total assets is fair.

l SC’s cost of goods sold is average, comparing with its turnover.

LIQUIDITY: AVERAGE

l The current ratio of SC is maintained in a normal level.

l SC’s quick ratio is maintained in a normal level.

l The inventory of SC appears LARGE.

l The accounts receivable of SC is maintained in an average level.

l SC has no short-term loan in 2007.

l SC’s turnover is in an average level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is low.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered small-sized in its line with fairly stable financial conditions. The large amount of inventory could be a threat to SC’s financial condition. A credit line up to USD 50,000 appears to be within SC’s capacities.

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.	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