MIRA INFORM REPORT

Report Date :

07.03.2011

IDENTIFICATION DETAILS

Name :	NAM FUNG ELECTRICAL MANUFACTURING

Registered Office :	Flat 3, 14/F., Block B, Po Yip Building, 62-70 Texaco Road, Tsuen Wan, New Territories

Country :	Hong Kong

Date of Incorporation :	03.04.1980

Com. Reg. No.:	06533477-000-04

Legal Form :	Sole Proprietorship

Line of Business :	Manufacturer, Importer and Exporter of all kinds of electrical supplies

RATING & COMMENTS

MIRA’s Rating :

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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Hong Kong

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

company name

NAM FUNG ELECTRICAL MANUFACTURING

Company ADDRESS

Flat 3, 14/F., Block B, Po Yip Building, 62-70 Texaco Road, Tsuen Wan, New Territories, Hong Kong.

PHONE: 2414 4989

FAX: 2415 0934

E-MAIL: sales@fungyip.com

MANAGEMENT

Manager: Mr. Yip Ping Nam

SUMMARY

Establishment: 3rd April, 1980.

Organization: Sole Proprietorship.

Capital: Not disclosed.

Business Category: Electrical Product Manufacturer and Trader.

Annual Turnover: HK$120~125 million (Including affiliates)

Employees: 15. (Including affiliates in Hong Kong)

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

Banking Relation: Satisfactory.

Company ADDRESS

Head Office:-

Flat 3, 14/F., Block B, Po Yip Building, 62-70 Texaco Road, Tsuen Wan, New Territories, Hong Kong.

Singapore Office:-

Fung Yip Electrical (S) Pte. Ltd.

119, Genting Lane, #05-04, H&H Building, Singapore 349570.

[Tel: (65) 6396 3133; Fax: (65) 6846 9958]

China Factory:-

Fung Yip Electrical Manufacturing Factory (Heyuan) Co. Ltd.

Yuan Cheng District, 518034 Heyuan City, Guangdong Province, China.

Affiliated Companies:-

Fung Yip Electrical Manufacturing Ltd., Hong Kong.

Nam Fung Electrical Manufacturing Ltd., Hong Kong.

Y.P.N. Co. Ltd., Hong Kong.

BUSINESS REGISTRATION NUMBER

06533477-000-04

MANAGEMENT

Manager: Mr. Yip Ping Nam

Contact Person: Mr. Wilson Lo

SOLE PROPRIETOR

Name: Mr. YIP Ping Nam

Residential Address: Flat 3, 14/F., Block B, Po Yip Building, 62-70 Texaco Road, Tsuen Wan, New Territories,

Hong Kong.

HISTORY

The subject was established on 3rd April, 1980 as a sole proprietorship concern owned by Mr. Yip Ping Nam under the Hong Kong Business Registration Regulations.

Initially the subject was located at Room 142, Block 1, Tai Wo Hau Factory Building, Tsuen Wan, New Territories, Hong Kong, moved to Flat 8, 13/F., Block B, Po Yip Building, 62-70 Texaco Road, Tsuen Wan, New Territories, Hong Kong in April 1986, to Flat 3, 14/F., Block B of the same buuilding in May 1987.

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

OPERATIONS

Activities: Manufacturer, Importer and Exporter.

Lines: All kinds of electrical supplies.

Brand Name: FUNG YIP.

Employees: 15. (Including affiliates in Hong Kong)

700. (China)

Materials/Commodities: Imports raw materials from Europe, Asian countries, and finished products from

China.

Markets: Middle East, Southeast Asia, Europe, USA, Australia, etc.

Annual Turnover: HK$120~125 million (Including affiliates)

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

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

FINANCIAL INFORMATION

Capital: Not disclosed.

Profit or Loss: Business is profitable.

Condition: Keeping in an active state.

Facilities: Making 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

Nam Fung Electrical Manufacturing is a sole proprietorship set up and owned by Mr. Yip Ping Nam. The subject commenced business in April 1980.

The subject has got an affiliated company Fung Yip Electrical Manufacturing Ltd. [Fung Yip] located at its operating address. Engaged in the same lines of business as the subject, Fung Yip was incorporated on 3rd September, 1992.

The subject is engaged in manufacturing low voltage switches and socket outlets, extension sockets, adaptors, plugs and the latest smart plug and play energy saving systems. Most of the products bear the brand name of “FUNG YIP”. The subject has had about 60% of the market share in Hong Kong and it is also growing its market share in Asia and the Middle East.

Now, Fung Yip has got a plant in Heyuan City, Guangdong Province, China. Formally known as Fung Yip Electrical Manufacturing Factory (Heyuan) Co. Ltd., the China factory was set up in 2004. The Heyuan factory has over 700 staff and a total floor area of 30,000 sqm. The factory also has over one hundred designer and engineer in its R&D division.

Fung Yip’s brand “FUNG YIP” was a winner of the 2004 “Hong Kong Top Brand Awards”. All Fung Yip’s products are certified to the quality standards of the major markets, namely: British Standards, ASTA Certification, Malaysia Standards and the Singapore Standards.

Fung Yip has been one of the leading manufacturers/exporters in producing electrical wiring accessories products for a long time in Hong Kong. It is engaged in designing, manufacturing a variety range of products that are not only popular for domestic and household use, but are also widely applied for hotels and building constructions, such as Hong Kong Grand Hyatt Hotel, The Hong Kong Government Supply Department and Kowloon Canton Railway Corporation. Many of its branded products such as “FUNG YIP”, “GOOD” and “ABC” are significant in Hong Kong. Fung Yip also receives OEM and ODM orders.

In order to ensure the quality of its products, Fung Yip uses high quality materials, such as Beetle Urea Molding Powder, ABS and PC resins which are mainly imported from the United Kingdom and Italy. Moreover, most of the assembly parts like spring and brass are imported from the United Kingdom.

The business of the subject and Fung Yip is chiefly administered by Mr. Yip Ping Nam. The subject has had an office in Singapore known as Fung Yip Electrical (S) Pte. Ltd. The annual sales turnover of the subject and Fung Yip ranges from HK$120 to 125 million. Overall business is active.

On the whole, having a history of over thirty years and eleven months, the subject is considered good for normal business engagements.

COURT CASES: None per our.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.99
UK Pound	1	Rs.73.24
Euro	1	Rs.62.80

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%)

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.