MIRA INFORM REPORT

Report Date :

25.08.2011

IDENTIFICATION DETAILS

Name :	GENERAL NICE RESOURCES (HONG KONG) LTD.
Registered Office :	7/F., Lippo Leighton Tower, 103 Leighton Road, Causeway Bay
Country :	Hong Kong
Date of Incorporation :	05.07.1999
Com. Reg. No.:	30808537
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of Steel and metallurgical materials, coke, non-ferrous metal, metal scrap, etc.

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 :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Hong Kong	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Bottom of Form

Company name

GENERAL NICE RESOURCES (HONG KONG) LTD.

Company ADDRESS

7/F., Lippo Leighton Tower, 103 Leighton Road, Causeway Bay, Hong Kong.

PHONE: 2808 2878

FAX: 2808 0883

E-MAIL: info@gnr.com.hk

MANAGEMENT

Chief Executive Officer & Executive Director: Mr. Lau Yu

SUMMARY

Incorporated on: 5th July, 1999.

Organization: Private Limited Company.

Capital: Nominal: HK$200,000,000.00

Issued: HK$200,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 25.

Main Dealing Banker: Bank of China (Hong Kong) Ltd., Hong Kong.

Banking Relation: Satisfactory.

Company ADDRESS

Registered Head Office:-

7/F., Lippo Leighton Tower, 103 Leighton Road, Causeway Bay, Hong Kong.

Holding Company:-

General Nice Investment (China) Ltd., British Virgin Islands.

Ultimate Holding Company:-

General Nice Development Ltd., Hong Kong.

Subsidiary & Affiliated Companies:-

General Nice Group of Companies

· Abterra Coal & Coke Ltd., Hong Kong.

· Abterra Fu Yuan Coal Co. Ltd., Hong Kong.

· Abterra Ltd., Singapore.

· Abterra Macao Commercial Offshore Ltd., Macau.

· Abterra Resources Pte. Ltd., Singapore.

· Best Grand Trading Co. Ltd., Hong Kong.

· Billion Wealth Minerals Private Ltd., India.

· Coke Terminal of Tianjin Port Holding Co. Ltd., China.

· General Nice (China) Holding Ltd., Hong Kong.

· General Nice (Thailand) Co. Ltd., Thailand.

· General Nice (Tianjin) Industry Co. Ltd., China.

· General Nice Coal Ltd., Hong Kong.

· General Nice Metal Ltd., Hong Kong.

· General Nice Mineral Resources (India) Private Ltd., India.

· General Nice Minmetals (Tianjin) Co. Ltd., China.

· General Nice Recursos Comercial Offshore de Macau Limitada, Macau.

· General Nice Recycles Ltd., China.

· General Nice Resources (Asia) Ltd., Hong Kong.

· Loudong General Nice Resources (China) Holdings Ltd., Bermuda/Hong Kong.

· P.T. Abterra Resources Indonesia, Indonesia.

· Shanxi Loudong-General Nice Coking & Gas Co. Ltd., China.

· Tianjin General Nice Coke & Chemicals Co. Ltd., China.

· Tianjin Lant Development Co. Ltd., China

· Zuoquan Yongxing Coal Co. Ltd., China.

etc.

BUSINESS REGISTRATION NUMBER

30808537

COMPANY FILE NUMBER

0680855

MANAGEMENT

· Chairman & Executive Director: Mr. Cai Sui Xin

· Chief Executive Officer & Executive Director: Mr. Lau Yu

CAPITAL

Nominal Share Capital: HK$200,000,000.00 (Divided into 200,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$200,000,000.00

SHAREHOLDERS

(As per registry dated 05-07-2011)

Name		No. of shares
General Nice Investment (China) Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.		80,000,000
CAI Sui Xin		79,999,200
LAU Yu		39,999,800
TSANG Kwan Ho, Edmond		500
MOK Yui Ka, Alky		500
		––––––––––
	Total:	200,000,000 =========

DIRECTORS

(As per registry dated 05-07-2011)

Name (Nationality)	Address
LAU Yu	Flat H, 21/F., Block 2, South Wave Court, 3 Sum Wan Road, Aberdeen, Hong Kong.
CAI Sui Xin	Room 603, Block 6, Jin Bei Nam, Yi Jin Road, Shenzhen, China.

SECRETARY

(As per registry dated 18-07-2011)

Name	Address
CHUNG Tin Yau	7/F., Lippo Leighton Tower, 103 Leighton Road, Causeway Bay, Hong Kong.

HISTORY

The subject was incorporated on 5th July, 1999 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Best Grand (Hong Kong) Ltd., name changed to the present style on 12th April, 2000.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: Steel and metallurgical materials, coke, non-ferrous metal, metal scrap, etc.

Employees: 25.

Commodities Imported: India, Southeast Asia, Europe, etc.

Markets: China and other foreign countries.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Nominal Share Capital: HK$200,000,000.00 (Divided into 200,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$200,000,000.00

Alternation of Capital:-

Initially	paid up	HK$ 100,000,000.00
04-05-2010	paid up	HK$ 100,000,000.00
		–––––––––––––––––
Total:	paid up	HK$ 200,000,000.00 ================

Increase of Nominal Capital:-

From

HK$100,000,000.00

to

HK$200,000,000.00

on

04-05-2010

Mortgage or Charge (since April 2011): (See attachment)

Profit or Loss: Made small profits in the past years.

Condition: Business is rather active.

Facilities: Making active use of general banking facilities.

Solvency: Met trade commitments as contracted.

Commercial morality: Satisfactory.

Bankers:-

· Bank of China (Hong Kong) Ltd., Hong Kong.

· Oversea-Chinese Banking Corporation Ltd., Hong Kong Branch.

· Société Générale, Hong Kong Branch.

Standing: Normal.

GENERAL

Having issued 200 million ordinary shares of HK$1.00 each, General Nice Resources (Hong Kong) Ltd. is jointly owned by General Nice Investment (China) Ltd., a BVI-registered firm holding 40% interests; Mr. Cai Sui Xin, holding 40%; and Mr. Lau Yu, holding 20%. The other minor shareholders are Mr. Edmond Tsang Kwan Ho and Ms. Alky Mok Yui Ka. The equities held by the two are insignificant. The subject in fact is a subsidiary of General Nice Development Ltd. [GNDL], a Hong Kong-registered firm.

The subject has got the following wholly-owned subsidiaries:-

Billion Wealth Minerals Private Ltd., India

General Nice Metal Ltd., Hong Kong

General Nice Mineral Resources (India) Private Ltd., India

General Nice Recursos Comercial Offshore de Macau Limitada, Macau

Besides, the subject is the shareholders of the following two firms:-

Loudong General Nice Resources (China) Holdings Ltd. [LGNRC], Bermuda/Hong Kong (Holding 18.75% interests)

Abterra Ltd. [Abterra], Singapore (Holding 41.17% interests)

On 27th October, 2006, the subject acquired 65% of the shareholding of Abterra, a listed firm in Singapore, thus the subject became the new controlling shareholder of Abterra. As at 19th April, 2007, the subject had held just 50.19% of Abterra. Now, the subject is just holding 41.17% of Abterra.

LGNRC is a Hong Kong-listed firm while Abterra, a Singapore-listed firm.

The subject’s ultimate holding company GNDL is chiefly owned by Mr. Tsoi Ming Chi and Mr. Cai Sui Xin. GNDL is an investment holding company of the General Nice Group.

The subject is importing and exporting non-ferrous metal, metal scrap; providing management support and seeking financial support for the Group.

GNDL is an international trading company registered in Hong Kong in 1992. Over the past years, it has established subsidiaries in Tianjin, Shenzhen SEZ, Taiyuan and Xiaoyi in China and also has set up a number of wholly owned and joint-venture companies both in Hong Kong and Thailand.

The Group has now become the major international company involving in the business of steel and metallurgical materials in China. Its operation headquarter is set up in Tianjin China.

The Group is running large scale of businesses having sound financial positions. Having a history of about sixteen years, the Group has got advanced technology, experienced staff and has been equipped with the state of the art equipment. It is now playing an important role in coke trading in China.

Now, the Group is trading in the following commodities:-

· Coke – Metallurgical coke, foundry coke

· Metal Scrap – Motor scrap, cable scrap, mixed brass scrap, copper scrap, copper wire scrap

· Non-ferrous Metals – Aluminium ingot, tin ingot, magnesium ingot

· Ferro-Alloy – High carbon ferro chrome, low carbon ferro chrome, ferro-molybdenum, ferro manganese, ferro-silicon, silicon metal, silicon manganese

· Mineral Ores

General Nice Group has formed two main business chains: one is based on coal mining, coal selecting and washing, coking, coke exporting, gangue electricity generating facility, chemical by product and railway transportation; another chain is based on iron ore mining, iron ore importing.

The Group’s 2008-2018 Mineral Recourses Development Plan:-

Coal:

· Production: 10 million Metric tons/year

· Sale: 20 million Metric tons/year

Coking Coal:

· Production: >15 million Metric tons

· At present: 3.8 million Metric tons

· Sale: 15million metric tons per year

Iron Ore:

· Import: 15million metric tons per year

Overseas:

· Create iron ore supply chain in South Pacific, Southeast Asia and India. Develop Iron ore resources in Australia, Indonesia, the Philippines, Thailand, India, Brazil and Canada. The Group is seeking business opportunities for resources goods in Vietnam and Laos

· SP/block iron (Fe content > 55%)

· Production capacity: 10 million tons/year

Mainland China:

· In Shanxi, Hebei, Liaoning, plans to merger and purchase more than 10 iron ore enterprises which are similar to Zuoquan enterprises

· Original ore production capacity: 5 million tons/year

· Non-ferrous metals: Gold, lead, zinc, nickel etc in Indonesia

In 2008, the total asset of the Group was HK$7.2 billion and revenue was over HK$8.8 billion. Now, the annual sales turnover of the Group ranges from HK$8.0 to 8.5 billion.

At present, the Group has become one of the major international groups in the field of China’s metallurgical coke and iron ore business. It has adequate financial resources to develop its business further.

In recent years, the Group has identified long term development strategies for itself and its subsidiaries companies such as the subject, LGNRC, Abterra and Shanxi Loudong-General Nice Coking & Gas Co. Ltd.

Now, General Nice Group has been co-operating with many large-sized Chinese Government-owned enterprises. Business is rather active.

Some of the General Nice Group companies are located in Bohai Sea Ring Economic Zone of China where it also has participated in the real estate business in these areas.

The subject is fully supported by the General Nice Group.

On the whole, in view of the subject’s background, parentage, and turnover of the Group, consider it good for normal business engagements.

REMARKS:

Brief profile of directors:-

Mr. CAI Suixin (Chairman and Executive Director), aged 48, is the Founder and Chairman of GNDL, the subject and General Nice (Tianjin) Industry Co. Ltd. (collectively “General Nice”), Executive Chairman and Executive Director of Abterra, a company listed in the Singapore Exchange Securities Trading Ltd. He is also the Executive Chairman and Executive Director of LGNRC, a company listed in Hong Kong. Mr. Cai founded GNDL in 1992 and went on to establish other related companies under the General Nice Group. With Mr. Car’s well-established business relationship in Tianjin and Shanxi and more than 20 years business experience, the Group has expanded one of China’s biggest producers and operators of metallurgy coke after many years of development.

Mr. LAU Yu (Chief Executive Officer and Executive Director), aged 41, is the Chief Executive Officer and Director of the subject, Chief Executive Officer and Executive Director of Abterra. He is also the Executive Director of LGNRC. Mr. Lau holds a Bachelor of Business Administration degree from the school of Finance in University of Hawaii in the United States of America. Mr. Lau has over 16 years of solid experience in international trading of mineral resources and metals, including coal, coke, iron ore and steel. With his experience in the trading of coke and metallurgy, he has established strong relationship with customers in India, Australia, South Africa, Venezuela and Brazil. Mr. Lau was made various good financial arrangements for both the subject and Abterra with his strong financial background.

Court case record:-

Action Date	Case No.	Plaintiff	Defendant	Cause	Amount
Feb. 2007	H299	Union Bank of India	General Nice Resources (Hong Kong) Ltd.	Breach of Contract	Not stated

MORTGAGE OR CHARGE

(Since April 2011)

Date	Particulars	Amount
04-07-2011	Instrument: Assignment of Hedging Contracts Property: The Assignor, as beneficial owner and as a continuing security for the Secured Liabilities assigns and agrees to assign absolutely to the Bank all the Assignor’s present and future rights, title, interests and benefits in and to the Hedging Contracts, all rights and remedies of the Assignor in connection with the Hedging Contracts and all proceeds and claims arising from them Mortgagee: Oversea-Chinese Banking Corporation Ltd., Hong Kong Branch.	All or any money and liabilities
04-07-2011	Instrument: Charge on Cash Deposit Property: As a continuing security for the Secured Liabilities, the Chargor, as beneficial owner, charges and agrees to charge to the Bank by way of first fixed charge: (a) the Chargor’s entire right, title and interest in and to the Deposit; and (b) all rights and benefits accruing to or arising in connection with the Deposit Mortgagee: Oversea-Chinese Banking Corporation Ltd., Hong Kong Branch.	All or any money and liabilities
14-07-2011	Instrument: Trade Finance Security Assignment Property: The Borrower as beneficial owner and as continuing security for the payment of all Secured Liabilities Mortgagee: Société Générale, Hong Kong Branch.	All obligations and liabilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.77
UK Pound	1	Rs.75.58
Euro	1	Rs.65.97

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	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
----	NB	New Business	----

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.