MIRA INFORM REPORT

Report Date :

05.01.2011

IDENTIFICATION DETAILS

Name :	LEVACHEM CO. LTD.
Registered Office :	c/o Sinomix & Co., Certified Public Accountants, Room 1505B, 15/F., Fortress Tower, 250 King’s Road, North Point
Country :	Hong Kong
Date of Incorporation :	02.08.2002
Com. Reg. No.:	32858518
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of all kinds of fine chemicals, etc.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
Hong Kong	a2	a2

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

Company name

LEVACHEM CO. LTD.

Company ADDRESS

c/o Sinomix & Co., Certified Public Accountants

Room 1505B, 15/F., Fortress Tower, 250 King’s Road, North Point, Hong Kong.

PHONE: 2174 8030

FAX: 8344 5661

MANAGEMENT

Managing Director: Mr. Lu Min Yan

SUMMARY

Incorporated on: 2nd August, 2002.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000.00

Issued: HK$10,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: Nil.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Satisfactory.

company ADDRESS

Registered Head Office:-

c/o Sinomix & Co., Certified Public Accountants

Room 1505B, 15/F., Fortress Tower, 250 King’s Road, North Point, Hong Kong.

Affiliated Company:-

Nanjing Levachem Co. Ltd.

2112, Suning Universal Mansion, 188 Guangzhou Road, Nanjing City 210024, Jiangsu Province, China.

[ Tel: 86-25-8324 7442~3, 8324 7445~7

Fax: 86-25-8324 7441

E-mail: sales@levachem.com ]

BUSINESS REGISTRATION NUMBER

32858518

COMPANY FILE NUMBER

0808808

MANAGEMENT

Managing Director: Mr. Lu Min Yan

CAPITAL

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

SHAREHOLDERS

(As per registry dated 02-08-2010)

Name		No. of shares
LU Min Yan		2,500
CAI Jun		2,500
LUO Kai Yu		2,500
LIU Tong Qiu		2,500
		––––––
	Total:	10,000 =====

DIRECTORS

(As per registry dated 02-08-2010)

Name (Nationality)	Address
LU Min Yan	Room 2607, No. 2, Xiyi Xincun, Baixia, Nanjing, Jiangsu, China.
CAI Jun	Room 2204, No. 4, Beimenqiao Road, Xuanwu, Nanjing, Jiangsu, China.
LUO Kai Yu	Room 1506, Unit 3, No. 218, Hanzhong Road, Gulou, Nanjing, Jiangsu, China.
LIU Tong Qiu	Room 1406, Unit 3, No. 5, Guangzhou Road, Gulou, Nanjing, Jiangsu, China.

SECRETARY

(As per registry dated 02-08-2010)

Name	Address	Co. No.
Brothers Ltd.	Unit 842, 1/F., Block D, Mai Tak Industrial Building, 221 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong.	0809165

HISTORY

The subject was incorporated on 2nd August, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject’s registered address was located at Room 1020-1021, 10/F., Ocean Centre, Harbour City, 5 Canton Road, Tsimshatsui, Kowloon, Hong Kong where is the operating address of a secretarial firm known as Hong Kong Secretarial Ltd. The subject’s registered address moved to the present address in August 2010 as it has changed its secretarial firm since then.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of fine chemicals, etc.

Employees: Nil.

Materials/Commodities: Imports raw materials from European countries, some Asian countries and finished

products from China.

Markets: China, other Asian countries, Europe, North America, etc.

Terms/Sales: L/C, T/T, etc.

Terms/Buying: L/C, T/T, D/P, etc.

FINANCIAL INFORMATION

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

Profit or Loss: Keeping a balance account in Hong Kong.

Condition: Business is not active in Hong Kong.

Facilities: Making fairly active use of general banking facilities.

Payment: Met trade commitments on time.

Commercial Morality: Satisfactory.

Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Standing: Small.

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Levachem Co. Ltd. is equally owned by Mr. Lu Min Yan, Mr. Cai Jun, Mr. Luo Kai Yu and Mr. Liu Tong Qiu. Being China I.D holders, all the shareholders are also directors of the subject. Currently, they are residing in Nanjing City, Jiangsu Province, China.

The subject does not have its own operating office. Its registered office is in an accountant firm located at Room 1505B, 15/F., Fortress Tower, 250 King’s Road, North Point, Hong Kong known as Sinomix & Co., Certified Public Accountants which is handling its correspondences and documents. The subject’s corporate secretary Brothers Ltd. is located at a different address. The subject changed its registered address in August 2010.

The subject has no employees in Hong Kong.

To our knowledge, the subject has had a main affiliated company Nanjing Levachem Co. Ltd. [Nanjing Levachem] which is in Nanjing City, Jiangsu Province, China. The subject and Nanjing Levachem form the Levachem Group.

Levachem Group was established in 2001. It has had four cooperating manufacturers that are engaged in producing fine chemicals, diversified pharmaceuticals, agrochemical ingredients and other high technology products.

The following firms are its partners:-

· Xin Yuan Fine Chemical Co. Ltd. — Produce Dyestuff / Pigment / Agrochemical Intermediates and Special chemicals, etc.

· Tian Ma Fine Chemical Co. Ltd. — Produce Pharmaceutical Ingredients, such as N-octyl D-Glucmine, etc.

· Xing Nong Chemical Co. Ltd. — Produce Agrochemical and intermediates, etc.

· Lixin Chemical Co. Ltd. — Produce Dyestuff Intermediates, such as Bromamine acid, 1-amino anthraquinone, etc.

Nanjing Levachem is marketing the above-mentioned firms products. Most of the chemicals are exported to Europe, the Middle East, Africa, Oceania, Asian countries, North America, Central and South America, etc. About 90% of the products are exported. It was reported that the annual sales turnover of Nanjing Levachem is about RMB750 to 800 million.

Nanjing Levachem is also operated and owned by the four shareholders of the subject. Its bas opened an account at The Hongkong & Shanghai Banking Corp. Ltd., Shanghai Branch, China.

It is likely that Nanjing Levachem deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong. Nanjing Levachem also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

The subject’s business in Hong Kong is not very active.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

COURT CASES: None per our.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.84
UK Pound	1	Rs.69.32
Euro	1	Rs.59.79

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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