MIRA INFORM REPORT

Report Date :

19.10.2011

IDENTIFICATION DETAILS

Name :	HISENSE INTERNATIONAL (HK) CO. LTD.

Registered Office :	Room 3101-3105, Singga Commercial Centre, 148 Connaught Road West

Country :	Hong Kong

Date of Incorporation :	14.04.2008

Com. Reg. No.:	39156690

Legal Form :	Private Limited Company.

Line of Business :	Importer, Exporter and Wholesaler of all kinds of electric appliances, etc.

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 :	No Complaints

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 – September 30^th, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Hong Kong

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

Company name

HISENSE INTERNATIONAL (HK) CO. LTD.

Company ADDRESS

Room 3101-3105, Singga Commercial Centre, 148 Connaught Road West, Hong Kong.

PHONE: 2953 5622

FAX: 2836 2570

MANAGEMENT

Managing Director: Ms. Yu Shu Min

SUMMARY

Incorporated on: 14th April, 2008.

Organization: Private Limited Company.

Capital: Nominal: HK$5,000,000.00

Issued: HK$5,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 15. (Including associates)

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

Banking Relation: Satisfactory.

Company ADDRESS

Registered Head Office:-

Room 3101-3105, Singga Commercial Centre, 148 Connaught Road West, Hong Kong.

Holding Company:-

Hisense International Co. Ltd., China.

Ultimate Holding Company:-

Hisense Group Co. Ltd., China.

Associated/Affiliated Companies:-

· Guangdong Hisense Multimedia Co. Ltd., China.

· Hisense (HK) Co. Ltd., Hong Kong.

· Hisense (Malaysia) Sdn. Bhd., Malaysia.

· Hisense (Qingdao) Import & Export Co. Ltd., China.

· Hisense Australia Pty. Ltd., Australia.

· Hisense Benelux N.V., Belgium.

· Hisense Electric Co. Ltd., China.

· Hisense Electronic Iberia S.L., Spain.

· Hisense Finance Co. Ltd., China.

· Hisense Germany GmbH, Germany.

· Hisense Hungary Kft, Hungary.

· Hisense International (Canada) Co. Ltd., Canada.

· Hisense Italy S.R.L., Italy.

· Hisense Japan Co. Ltd., Japan.

· Hisense Kelon Electrical Holdings Co. Ltd., Hong Kong/China.

· Hisense SA Development Enterprise (Pty) Ltd., South Africa.

· Hisense UK Ltd., U.K.

· Hisense USA Corporation, U.S.A.

· Ligent Photonics Incorporated, U.S.A.

· Qindgao Hisense Communication Co. Ltd., China.

· Qingdao Hisense Air-Conditioning Co. Ltd., China.

· Qingdao Hisense Electronic Equipment Co. Ltd., China.

· Qingdao Hisense Electronic Holdings Co. Ltd., China.

· Qingdao Hisense Electronic Technology Service Co. Ltd., China.

· Qingdao Hisense International Marketing Co. Ltd., China.

· Qingdao Hisense Property Corporate Co. Ltd., China.

· Qingdao Hisense Real Estate Co. Ltd., China.

· Savor Household Electrical Appliance Service Industry Co. Ltd., China.

· Zibo Hisense Electronic Co. Ltd., China.

etc.

BUSINESS REGISTRATION NUMBER

39156690

COMPANY FILE NUMBER

1227056

MANAGEMENT

Managing Director: Ms. Yu Shu Min

CAPITAL

Nominal Share Capital: HK$5,000,000.00 (Divided into 5,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$5,000,000.00

SHAREHOLDER

(As per registry dated 14-04-2011)

Name		No. of shares
Hisense International Co. Ltd. 218 Qianwangang Road, Qingdao Economic Technological Development Zone, Qingdao City, Shandong Province, China.		5,000,000 =======

Name

No. of shares

Hisense International Co. Ltd.

218 Qianwangang Road, Qingdao Economic Technological Development Zone, Qingdao City, Shandong Province, China.

5,000,000

=======

DIRECTORS

(As per registry dated 14-04-2011)

Name (Nationality)	Address
LIN Lan	265 Colton Crest Dr, Alpharetta, GA 30005-8967, U.S.A
YU Shu Min	Flat 401, Unit 1, Block 11, No. 1 Haian Road, Loshan District, Qingdao City, Shandong Province, China.

Name

(Nationality)

Address

LIN Lan

265 Colton Crest Dr, Alpharetta, GA 30005-8967, U.S.A

YU Shu Min

Flat 401, Unit 1, Block 11, No. 1 Haian Road, Loshan District, Qingdao City, Shandong Province, China.

SECRETARY

(As per registry dated 14-04-2011)

Name	Address	Co. No.
Modern Secretaries Ltd.	Room 3312, 33/F., Shui On Centre, No. 6-8 Harbour Road, Wanchai, Hong Kong.	0070852

HISTORY

The subject was incorporated on 14th April, 2008 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: All kinds of electric appliances, etc.

Employees: 15. (Including associates)

Commodities Imported: Imports raw materials from European countries, some of the Asian countries and finished

products from China.

Markets: China, Eastern and Western 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$5,000,000.00 (Divided into 5,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$5,000,000.00

Indebtedness: US$285,000,000 (Total amount outstanding on all mortgages and charges as per last

Annual Return dated 14-04-2011)

Mortgage or Charge: (See attachment)

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory manner.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

Bankers:-

· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

· Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Standing: Good.

GENERAL

Having issued 5 million ordinary shares of HK$1.00 each, Hisense International (HK) Co. Ltd. is wholly owned by Hisense International Co. Ltd. [HICL] which is a China-based firm. The ultimate holding company of the subject Hisense Group Co. Ltd. [Hisense Group/Hisense/Group] is also a China-based company.

The managing director of the subject Ms. Yu Shu Min is also the President of HICL.

In Hong Kong, the subject has had an associated company Hisense Kelon Electrical Holdings Co. Ltd. [Hisense Kelon] which is a listed firm bearing stock code 00921. Hisense Kelon shares the same operating office with the subject in Hong Kong.

The subject and HICL belong to the Hisense Group.

Besides Ms. Yu Shu Min, the key personnel of the Group are Mr. Lin Lan and Mr. Zhou Hou Jian.

Founded as Qingdao No. 2 Radio Factory in 1969, Hisense has now developed into a multibillion dollar global conglomerate, which has two listed companies [Hisense Electric Co., Ltd. (600060), on the Shanghai Stock Exchange, and Hisense Kelon Electrical Holdings Company Ltd. (000921), on the Shenzhen and Hong Kong Stock Exchanges]; owns three famous trademarks (Hisense, Kelon and Ronshen); and provides a wide range of products and services including “multimedia”, “home electric appliances”,

“telecommunications” and ”information technology”. Most of the products bear the following trade marks:

Hisense, Kelon, Ronshen, Savor, etc.

Hisense has expanded its business into high-end industries and also into the top tiers of those industries through continuous technological research and development.

Now, the Group has about 60,000 employees around the world.

The leading products of the Group are TVs, air conditioners, refrigerators, mobile phones, moulding, fibre optical transceivers and intelligent traffic management systems. The sales revenues of the Group in 2010 was US$$9.5 billion, increased by 13.8% as compared with previous year; overseas sales revenues amounted to US$1.4 billion, increased by 39.0% as compared with previous year.

In June 2008, Hisense was selected by the Central Propaganda Department and State-owned Assets Supervision and Administration Commission of the State Council (SASAC) as one of the top ten models for state-owned enterprises.

Currently, Hisense has had R&D centres in Qingdao, Shenzhen SEZ, Shunde, Beijing, the United States and Europe.

Hisense has 13 manufacturing facilities in China (located in the provinces of: Guangdong, Guizhou, Huzhou, Jiangsu, Liaoning, Linyi, Shandong, Sichuan, Yangzhou, Yingkou, Xinjiang, Zibo and the municipality of Beijing) and several outside of China, namely in Hungary, South Africa, Egypt, Algeria and France.

The subject is fully supported by the Group.

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

MORTGAGE OR CHARGE

Date	Particulars	Amount
21-04-2010	Instrument: Assignment of DC Proceeds Property: By way of assignment or agreement to assign in each case as beneficial owner. All monies in any currency representing proceeds payable or to be paid to the Customer under the Documentary Credits, all the Customer’s right, title, benefit and interest in the said Documentary Credits, the benefit of all powers and remedies for enforcing the Documentary Credits and any payment made pursuant to the contract for sale of goods in connection with which the Documentary Credit is issued. Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	All loans or other advances made or to be made by the Bank to the Customer against documents submitted under a Documentary Credit, all monies and liabilities in any currency owing by the Customer to the Bank at any time, whether separately or jointly, actually or contingently, present or future, interest on all loans and advances and such monies and all expenses of the Bank in perfecting or enforcing the Assignment
12-11-2010	Instrument: Security Over Deposits with the Bank (Limited Company – Under Seal) Property: A deposit with chargee and whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any other moneys or deposits placed with the chargee from time to time at any of its offices. Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	(i) all monies in any currency owing by the Company to the chargee at any time, actually or contingently, in any capacity, alone or jointly with any other person, (ii) interest on such monies, to the date on which the chargee receives payment, at the rates payable by the Company or which would have been payable but for any circumstance which restricts payment and (iii) all expenses of the chargee in perfecting or enforcing the charge
18-03-2011	Instrument: Security Over Deposit in respect of Obligations of the Depositor Property: By way of first fixed charge to the Chargee the account No. 861530043158 Mortgagee: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	All monies and liabilities
14-03-2011	Instrument: Contract of Mortgagor Property: The Mortgagor has had a fix deposit amounts to CYN3,284,500 in Shenzhen Huashang Bank Ltd. The deposit was made on 18th March, 2011. The deposit evidence has been handed to the Mortgagee who is able to withdraw the fix deposit on or before the maturity date in case the Mortgagor fail to fulfil its commitments. Mortgagee: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	The Mortgagor signed a contract bearing instrument No. UCA-F-2011-0206 (286) on 8th March, 2011 on which stated that the bank would supply the mortgagor with banking facilities and the mortgagor is liable for the repayment, interests and handling charges.
24-03-2011	Instrument: Contract of Mortgagor Property: The Mortgagor has had a fix deposit amounts to CYN39,300,000 in Shenzhen Huashang Bank Ltd. The deposit was made on 25th March, 2011. The deposit evidence has been handed to the Mortgagee who is able to withdraw the fix deposit on or before the maturity date in case the Mortgagor fail to fulfil its commitments. Mortgagee: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	The Mortgagor signed a contract bearing instrument No. UCA-F-2011-0206 (286) on 8th March, 2011 on which stated that the bank would supply the mortgagor with banking facilities and the mortgagor is liable for the repayment, interests and handling charges.
15-08-2011	Instrument: Contract of Mortgagor Property: The Mortgagor has had a fix deposit amounts to CYN20,448,000 in Shenzhen Huashang Bank Ltd. The deposit was made on 15th August, 2011. The deposit evidence has been handed to the Mortgagee who is able to withdraw the fix deposit on or before the maturity date in case the Mortgagor fail to fulfil its commitments. Mortgagee: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	The Mortgagor signed a contract bearing instrument No. UCA-F-2011-0206 (286) on 8th March, 2011 on which stated that the bank would supply the mortgagor with banking facilities and the mortgagor is liable for the repayment, interests and handling charges.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.14
UK Pound	1	Rs.77.58
Euro	1	Rs.67.58

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.