MIRA INFORM REPORT

Report Date :

22.11.2008

IDENTIFICATION DETAILS

Name :	TUEBINGEN CHEMICALS CO. LTD.
Registered Office :	Room 1711, 17/F., Cheung Fung Industrial Building, 23-39 Pak Tin Par Street, Tsuen Wan, New Territories
Country :	Hong Kong
Date of Incorporation :	31.10.1986.
Com. Reg. No.:	10617306
Legal Form :	Private Limited Company.
Line of Business :	Importer, Distributor and Wholesaler of All kinds of Chemicals.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

name of the company

TUEBINGEN CHEMICALS CO. LTD.

ADDRESS

Room 1711, 17/F., Cheung Fung Industrial Building, 23-39 Pak Tin Par Street, Tsuen Wan, New Territories, Hong Kong.

PHONE: 2413 1698, 2413 1620, 2417 2865

FAX: 2415 2433

E-MAIL: info@chthk.com

MANAGEMENT

Managing Director: Dr. Kwok Wang Fun

SUMMARY

Incorporated on: 31st October, 1986.

Organization: Private Limited Company.

Capital: Nominal: HK$28,000,000.00

Issued: HK$28,000,000.00

Business Category: Chemical Merchant.

Employees: 8.

Main Dealing Banker: DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt AM Main, Hong Kong Branch.

Banking Relation: Good.

ADDRESS

Registered Head Office:-

Room 1711, 17/F., Cheung Fung Industrial Building, 23-39 Pak Tin Par Street, Tsuen Wan, New Territories, Hong Kong.

Holding Company:-

RB Beitlich Industriebeteiligungen GmbH

Bismarckstrasse 102, D-72072 Tuebingen, Germany.

Ultimate Holding Company:-

CHT. R. Beitlich GmbH

Bismarckstrasse 102, D-72072 Tuebingen, Germany.

Affiliated Companies:-

CHT (India) Pvt. Ltd., India.

Dongguan Kaiwoo Chemical Factory Ltd., China.

Shanghai Tuebingen Chemical Factory Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

10617306

COMPANY FILE NUMBER

177270

MANAGEMENT

Managing Director: Dr. Kwok Wang Fun

CAPITAL

Nominal Share Capital: HK$28,000,000.00 (Divided into 140,000 shares of HK$200.00 each)

Issued Share Capital: HK$28,000,000.00

SHAREHOLDERS

(As per registry dated 31-10-2008)

Name		No. of shares
RB Beitlich Industriebeteiligungen GmbH Bismarckstrasse 102, D-72072 Tuebingen, Germany.		91,000
KWOK Wang Fun		49,000
		–––––––
	Total:	140,000 ======

DIRECTORS

(As per registry dated 31-10-2008)

Name (Nationality)	Address
KWOK Wang Fun (Australian)	38A, Broadview Villa, 20 Broadwood Road, Hong Kong.
Erich MECHEL	Im Kugelbrettle 12, 73734 Esslingen, Germany.
Dr. Bernhard Josef HETTICH	Im Brennofen 10, 72135 Dettenhausen, Germany.

SECRETARY

(As per registry dated 31-10-2008)

Name (Nationality)	Address
LI Shun Ying (Australian)	38A, Broadview Villa, 20 Broadwood Road, Hong Kong.

HISTORY

The subject was incorporated on 31st October, 1986 as a private limited liability company under the Hong Kong Companies Ordinance.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer, Distributor and Wholesaler.

Lines: All kinds of chemicals.

Employees: 8.

Commodities Imported: Mainly imported from Germany.

Markets: Hong Kong and other Asian countries.

Terms/Sales: Various terms.

Terms/Buying: As per contracted.

FINANCIAL INFORMATION

Nominal Share Capital: HK$28,000,000.00 (Divided into 140,000 shares of HK$200.00 each)

Issued Share Capital: HK$28,000,000.00

Mortgage or Charge:-

Date of Mortgage: 17-03-1990

Amount: To secure all moneys in respect of general banking facilities

Property: (1) 10,386/905,336th parts or shares of and in The Remaining Portion of Tsuen Wan Town Lot No. 313 and (2) 10,386/779,537th parts or shares of and in High Block of Cheung Fung Industrial Building [the Building] [(1) Unit 10 & 11 on 17/F. of the Building and (2) Car Park No. P23 on 1/F. of the Building]

Mortgagee: Deutsche Genossenschaftsbank, Hong Kong Branch. [Renamed to DG Bank Deutsche Genossenschaftsbank AG and further to DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt AM Main]

Profit & Loss: Profitable operation is maintained.

Condition: Keeping in an active and satisfactory manner.

Facilities: Making active use of general banking facilities.

Payment: Regularly met.

Commercial Morality: Good.

Banker: DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt AM Main, Hong Kong Branch.

Standing: Good.

GENERAL

Tuebingen Chemicals Co. Ltd. is a private limited company formerly jointly owned by a German merchant Mr. Ulrich Hambrecht holding 65%, and a local Chinese with Australian nationality Dr. Kwok Wang-Fun, holding 35%. On 13th December, 1999, Mr. Ulrich Hambrecht transferred all his shares to CHT. R. Beitlich GmbH [CHT Group/CHT], a Germany-based firm while Dr. Kwok is still holding 35% of the subject’s stakes. In recent years, CHT has transferred all its shares to its subsidiary RB Beitlich Industrie-beteiligungen GmbH, also a Germany-based firm. After the transference, CHT has become the ultimate holding company of the subject.

The subject is a chemical trader engaged in importing, re-exporting and wholesaling of various kinds of chemicals, chemical raw materials which are mainly imported from Germany. Its prime markets are Hong Kong and other Asian countries. Most of its Hong Kong buyers have got affiliated factories in China.

The subject’s German shareholder and other German directors are in Germany responsible for acquiring chemicals for the subject. Business has been good and distribution channels have been well developed.

Operation started in 1987 and current financial standing is rather satisfactory, the subject is mainly controlled by Dr. Kwok and his spouse, Ms. Li Shun Ying.

CHT Group started to produce chemical additives in Tübingen on Neckar on 18th October, 1953. In the very first year of business, the company had 13 employees – and a turnover of around €235,000.

CHT has been engaged in the development, production and sale of additives for the textile processing industry for more than 50 years. Its products are chiefly for the entire textile chain and provides additives for fibre production, pre-treatment, dyeing processes and textile printing and also for finishing and coating. In addition, CHT develops intelligent system solutions and products for the new business areas of garment finishing and textile care.

CHT’s product range also includes textile dyes which are processed and sold world-wide under the brand name “BEZEMA” by the CHT company of the same name in Switzerland. Besides, CHT also distributes silicone oil for the paper industry.

Now, CHT and its affiliated companies and representatives are active in more than 50 countries. Besides the subject, main subsidiaries of CHT are in China, Italy, Pakistan, Brazil, Turkey, India, Germany, Switzerland, and North America.

The annual sales turnover of CHT is very significant.

The subject is fully supported by CHT.

On the whole, having a history of over 22 years, the subject is considered good for normal business engagements.

REMARKS

Court Cases: None per our.

Property information of the company:-

Property Location: Unit 10 & 11 on 17/F. and Car Park No. P23 on 1/F.,
Cheung Fung Industrial Building, 23-39 Pak Tin Par Street, Tsuen Wan, New Territories, Hong Kong.

Owner: Tuebingen Chemicals Co. Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
17-03-1990	-	Deutsche Genossenschaftsbank, Hong Kong Branch. [Renamed to DG Bank Deutsche Genossenschaftsbank AG and further to DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt AM Main]	Mortgage to secure general banking facilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.03
UK Pound	1	Rs.74.42
Euro	1	Rs.62.71

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