MIRA INFORM REPORT

Report Date :

27.01.2011

IDENTIFICATION DETAILS

Name :	SUN HING LEE TEXTILE LTD.
Registered Office :	Flat D, 5/F., Jing Ho Industrial Building, 78-84 Wang Lung Street, Tsuen Wan, New Territories
Country :	Hong Kong
Date of Incorporation :	07.07.2005
Com. Reg. No.:	35804952
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of Fabrics, yarns, cotton, 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 – 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

SUN HING LEE TEXTILE LTD.

Company ADDRESS

Flat D, 5/F., Jing Ho Industrial Building, 78-84 Wang Lung Street, Tsuen Wan, New Territories, Hong Kong.

PHONE: 2408 9422

FAX: 2407 4341

MANAGEMENT

Managing Director: Mr. Cheuk Wai Hung

SUMMARY

Incorporated on: 7th July, 2005.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000.00

Issued: HK$2.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 8.

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

Banking Relation: Satisfactory.

Company ADDRESS

Registered Head Office:-

Flat D, 5/F., Jing Ho Industrial Building, 78-84 Wang Lung Street, Tsuen Wan, New Territories, Hong Kong.

Associated/Affiliated Companies:-

· Hing City Chaozhou Restaurant, Hong Kong.

· Hing Lee Fibres Industrial Enterprise Co., Hong Kong.

· Hing Lee Textile Fibres (Shenzhen) Co. Ltd., China.

· Hing Lee Weaving Co. Ltd., China.

· Lufeng Donghai Sun Hing Lee Textile Ltd., China.

· Lufeng Hing Lee Textile Ltd., China.

· Lufeng Xingtong Textile Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

35804952

COMPANY FILE NUMBER

0981548

MANAGEMENT

Managing Director: Mr. Cheuk Wai Hung

Contact Person: Mr. Danny Tsoi

CAPITAL

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

Issued Share Capital: HK$2.00

SHAREHOLDERS

(As per registry dated 07-07-2010)

Name		No. of shares
CHEUK Wai Hung		1
CHEUK Wai Keung		1
		––
	Total:	2 =

DIRECTORS

(As per registry dated 07-07-2010)

Name (Nationality)	Address
CHEUK Wai Hung	Flat B, 11/F., Block 23, Hong Kong Garden, TLTL 60 RP, Lung Tang Road, Tsing Lung Tau, New Territories, Hong Kong.
CHEUK Wai Keung	Flat B, 11/F., Block 23, Hong Kong Garden, TLTL 60 RP, Lung Tang Road, Tsing Lung Tau, New Territories, Hong Kong.

SECRETARY

(As per registry dated 07-07-2010)

Name	Address	Co. No.
Samuel Secretaries Ltd.	Room 906, 9/F., Unicorn Trade Centre, 127-131 Des Voeux Road Central, Hong Kong.	0320677

HISTORY

The subject was incorporated on 7th July, 2005 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, Exporter and Wholesaler.

Lines: Fabrics, yarns, cotton, etc.

Employees: 8.

Commodities Imported: USA, India, etc.

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

Terms/Sales: L/C or as per contracted.

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$2.00

Profit or Loss: Making a small profit in the past three years.

Condition: Keeping in a satisfactory manner.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

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

Standing: Normal.

GENERAL

Having issued 2 ordinary shares of HK$1.00 each, Sun Hing Lee Textile Ltd. is equally owned by Mr. Cheuk Wai Hung and Mr. Cheuk Wai Keung. Being Hong Kong merchants, the two Cheuks are also directors of the subject.

The subject is one of the approved foreign enterprises to import cotton from abroad and re-export to China. Its licence number is C110090198.

Besides trading in cotton, the subject also trades in the following commodities:-

· Denim — Cotton, Woven (OEM)

· Denim — Cotton Blended, Woven (OEM)

· Yarn — Blended (Excluding Polyester/Cotton) (OEM)

· Yarn — Cotton and Polyester/Cotton (OEM)

The subject has had a number affiliated or associated companies in Hong Kong and China. Most of the affiliated or associated companies are set up by Mr. Cheuk Muk Sing who is the father of the subject’s shareholders.

In 1988, Cheuk Muk Sing started his property development business in Shanwei, Guangdong Province, China. In 2000, he set up Lufeng Hing Lee Textile Ltd. in Lufeng, Shantou, China. Now, Cheuk Muk Sing is also the director of Lufeng Xingtong Textile Co. Ltd. which is a joint venture with an American partner. In Hong Kong, Cheuk Muk Sing has set up Hing City Chaozhou Restaurant. Cheuk Muk Sing has been a significant character in Shanwei City of Guangdong Province, China.

The subject’s other affiliated firms in China are the following:-

· Hing Lee Textile Fibres (Shenzhen) Co. Ltd.

· Hing Lee Weaving Co. Ltd.

· Lufeng Donghai Sun Hing Lee Textile Ltd.

· Lufeng Hing Lee Textile Ltd.

The subject exports the products produced by the above-mentioned firms to foreign markets. Business is active.

It was reported that the total assets of Cheuk Muk Sing amounted to RMB 4 billion Yuan.

On the whole, in view of the background of the subject, consider it good for normal business engagements.

COURT CASES: None per our.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.53
UK Pound	1	Rs.72.78
Euro	1	Rs.62.14

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

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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