MIRA INFORM REPORT

Report Date :

30.06.2011

IDENTIFICATION DETAILS

Name :	FAI PO JEWELLERY (H.K.) CO. LTD.
Registered Office :	Room 602-606, 6/F., Block A, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon
Country :	Hong Kong
Date of Incorporation :	03.01.1997
Com. Reg. No.:	20408387
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Importer, Exporter and Wholesaler of Gemset jewellery, gold jewellery, 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 :	Usually Correct
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

FAI PO JEWELLERY (H.K.) CO. LTD.

Company ADDRESS

Room 602-606, 6/F., Block A, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.

PHONE: 2774 1199, 2774 4811, 2774 4833

FAX: 2330 1553, 2330 1563

E-MAIL: fpg@hkstar.com

MANAGEMENT

General Manager: Mr. Chan Wing Fai, Jacky

SUMMARY

Incorporated on: 3rd January, 1997.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000.00

Issued: HK$2.00

Business Category: Manufacturer, Importer, Exporter and Wholesaler.

Employees: 30. (Including affiliates in Hong Kong)

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

Banking Relation: Satisfactory.

Company ADDRESS

Registered Head Office:-

Room 602-606, 6/F., Block A, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.

China Factory:-

Lufeng Ronghui Gemstone Factory Co. Ltd.

Donghai Economic Development Area, 5-6 #, Lufeng, Guangdong Province, China.

[Tel: (86-660) 8236666; Fax: (86-660) 8230948]

Associated/Affiliated Companies:-

Fai Po Group of Companies

East Ocean Gems & Jewellery Co. Ltd., Hong Kong. [Dissolved]

Fai Po Diamond Ltd., Hong Kong.

Fai Po Gem & Jewellery Ltd., Hong Kong.

Fai Po Gem (China) Ltd., Hong Kong.

Fai Po Gem (H.K.) Co. Ltd., Hong Kong.

Fai Po Gems Manufacturing Co. Ltd., Hong Kong.

Fai Po Group Ltd., Hong Kong.

Fai Po Jewellery (China) Ltd., Hong Kong.

Fai Po Jewellery Inc., USA.

Fai Po Properties Ltd., Hong Kong.

Huahui Real Estate Development Co. Ltd., China.

Seng Fai Co. Ltd., Hong Kong.

Yi Danni Diamond Co. Ltd., China.

etc.

BUSINESS REGISTRATION NUMBER

20408387

COMPANY FILE NUMBER

0584998

MANAGEMENT

General Manager: Mr. Chan Wing Fai, Jacky

Sales Contact: Ms. Susanna Chow

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 03-01-2011)

Name		No. of shares
Pearl Dynasty Ltd. The Creque Building, P.O. Box 116, Road Town, Tortola, British Virgin Islands.		1
Joyce Field International Ltd. The Creque Building, P.O. Box 116, Road Town, Tortola, British Virgin Islands.		1
		––
	Total:	2 =

DIRECTORS

(As per registry dated 03-01-2011)

Name	Address
Pearl Dynasty Ltd.	The Creque Building, P.O. Box 116, Road Town, Tortola, British Virgin Islands.
Joyce Field International Ltd.	The Creque Building, P.O. Box 116, Road Town, Tortola, British Virgin Islands.

SECRETARY

(As per registry dated 03-01-2011)

Name	Address	Co. No.
Silver Swing (International) Ltd.	Room 807, 8/F., Opulent Building, 402‑406 Hennessy Road, Hong Kong.	0157939

HISTORY

The subject was incorporated on 3rd January, 1997 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Grand Power (Asia) Ltd., name changed to the present style on 16th January, 1998.

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

OPERATIONS

Activities: Manufacturer, Importer, Exporter and Wholesaler.

Lines: Gemset jewellery, gold jewellery, etc.

Employees: 30. (Including affiliates in Hong Kong)

2,000. (China)

Materials/Commodities Imported:-

Raw materials – Europe, India, Thailand, etc.

Finished products – China.

Markets: USA, Japan, Taiwan, Singapore, South Korea, UK, Italy, etc.

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

Terms/Buying: Various terms.

MEMBERSHIP

· Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.

· Hong Kong Jewelry Manufacturers’ Association, Hong Kong.

· Hong Kong Productivity Council, Hong Kong.

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

Mortgage or Charge:-

Date of Debenture: 12-03-2007

Amount: All sums of money

Property: As a continuing security for the payment of the Secured Indebtedness to the Bank, the Company, as beneficial owner, charged to the Bank by way of first floating charge: (a) all properties of the Company; (b) all stocks shares bonds and securities of any kind; (c) all book and other debts revenues and claims; (d) the uncalled capital goodwill and all patents patent applications trade marks trade names registered designs and copyrights and all licences and ancillary and connected rights relating to the intangible property; and (e) the undertaking and all other assets o the Company

Mortgagee: Bank of China (Hong Kong) Ltd., Hong Kong.

Profit or Loss: Business is profitable.

Condition: Keeping in an active condition.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial

Morality: Satisfactory.

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

Standing: Good.

GENERAL

Fai Po Jewellery (H.K.) Co. Ltd. is equally owned by two BVI-registered firms, namely, Pearl Dynasty Ltd. and Joyce Field International Ltd. The subject has just issued 2 ordinary shares of HK$1.00 each while each of the holding companies holds a single share.

According to the subject, its predecessor was set up in 1986.

The subject has had a main affiliated company located at its operating address known as Fai Po Diamond Ltd. [Fai Po Diamond].

Fai Po Diamond is jointly held by three firms: Star Ruby Holdings Ltd., a Samoa-registered firm holding 75% interests; Fairly Diamond Ltd., a BVI‑registered firm holding 15%; and Paragon Diamond Ltd., a Hong Kong‑registered firm, holding 10%.

The subject has got another affiliated company Fai Po Gem (H.K.) Co. Ltd. [Fai Po Gem] located at its operating address. Fai Po Gem and the subject are engaged in the same lines of business. This firm was incorporated on 3rd January, 1997.

The subject and its affiliated companies belong to Fai Po Group.

The subject is a jewellery trader and manufacturer. It is specialised in 14K and 18K gold jewellery set with all kinds of colour gemstones and semi‑precious stones, among which blue chalcedony is the most significant items. The other products include amethyst, citrine, tourmaline, peridot, blue topaz and rose quartz jewellery. Raw materials and diamonds are imported from India, Europe, Thailand, etc.

The subject has had an affiliated factory in China with a total monthly production capacity of over a hundred thousand units of jewellery. The factory is located in Donghai Economic Development Area, Lufeng, Guangdong Province, China, this factory is known as Lufeng Ronghui Gemstone Factory Co. Ltd. Currently the factory is employing about 2,000 workers and covering an area of 500 acres.

The subject also has had branches in Panyu, Guangzhou, Kunming, New York, etc.

At present, 90% of the subject’s products are exported to overseas markets such as the United States, Japan, Taiwan, Singapore, Malaysia, South Korea, the United Kingdom, Italy, the Middle East, etc. The remaining 10% is for domestic sales. Unit prices of the product ranges from several US dollar to a thousand US dollar.

The subject has got several more affiliated companies located at the subject’s operating office. It has got an affiliated company Fai Po Jewellery Inc. in the United States. This firm is in New York engaged in the distribution of the subject’s products in the United States.

Over the past years, the subject’s affiliated company Fai Po Gem participated a number of exhibitions and fairs held in the following countries, cities, and regions:-

· United States — New York, Miami, Phoenix, Tucson, Las Vegas

· Hong Kong

· China — Shenzhen Special Economic Zone, Shanghai, Guangzhou

· United Kingdom — London

· UAE — Sharjah, Abu Dhabi, Dubai

· Switzerland — Zurich

· Italy

· Japan

The subject’s business, which is rather active, is chiefly handled by Ms. Susanna Chow.

To our knowledge, another member of the Group is engaged in manufacturing “Gemstone Tiles”. Products include mosaic floor tiles, paving stones, etc.

The Group is also involved in real estate business. Its subsidiary Huahui Real Estate Development Co. Ltd. has had two development projects in Huizhou and Lufeng, Guangdong Province, China.

The annual sales turnover of the Group is very significant. Business is profitable.

In the years ahead, the Group will keep on developing its business in the following courses:-

· Establishing a public welfare image

· Creating a worldwide brand

· To be a profession leader

· Setting up a Talents’ “Cradle”

Besides, the Group is having the following plans: the formation of low-grade industrial diversification, the development of large-scale, business specialization, management of the industry pattern of differentiation.

The history of the subject is over fourteen years and five months.

On the whole, consider the subject good for normal business engagements.

COURT CASES: None per our.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.94
UK Pound	1	Rs.71.91
Euro	1	Rs.64.60

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%)

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

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