MIRA INFORM REPORT

Report Date :

29.12.2012

IDENTIFICATION DETAILS

Name :	SOUTH CHINA HAIR PRODUCTS (HK) LTD.
Registered Office :	B33, 21/F., Wah Lok Industrial Centre, 31-41 Shan Mei Street, Fo Tan, Shatin, New Territories
Country :	Hong Kong
Date of Incorporation :	11.08.2003
Com. Reg. No.:	33831765
Legal Form :	Private Limited Company.
Line of Business :	Importer, Exporter and Manufacturer of all kinds of hair products, etc
No. of Employees :	6

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 :	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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Hong Kong	A2	A2

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

Hong Kong - ECONOMIC OVERVIEW

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Source : CIA

Company name

SOUTH CHINA HAIR PRODUCTS (HK) LTD.

Company ADDRESS

B33, 21/F., Wah Lok Industrial Centre, 31-41 Shan Mei Street, Fo Tan, Shatin, New Territories, Hong Kong.

PHONE: 2609 3926

FAX: 2609 3930

E-MAIL: hkschair@hkstar.com

MANAGEMENT

Managing Director: Mrs. Chan Ma Yin Mei, Rebecca

SUMMARY

Incorporated on: 11th August, 2003.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$500,000.00

Business Category: Importer, Exporter and Manufacturer.

Employees: 6.

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

Banking Relation: Satisfactory.

Company name

SOUTH CHINA HAIR PRODUCTS (HK) LTD.

Company ADDRESS

Registered Head Office:-

B33, 21/F., Wah Lok Industrial Centre, 31-41 Shan Mei Street, Fo Tan, Shatin, New Territories, Hong Kong.

China Factory:-

Haifeng E’bu South China Hair Product Factory

Shangbei Road, Dapu Industrial Park, E’bu Town, Haifeng County, 516473 Shanwei City, Guangdong Province, China.

[Tel.: 86-660-6712648 Fax: 86-660-6713570]

Associated Companies:-

South China Hair Products (HK) Ltd., Hong Kong.

South China Hair Co., Hong Kong. (same address)

BUSINESS REGISTRATION NUMBER

33831765

COMPANY FILE NUMBER

0856865

MANAGEMENT

Managing Director: Mrs. Chan Ma Yin Mei, Rebecca

CAPITAL

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$500,000.00

SHAREHOLDERS

(As per registry dated 11-08-2012)

Name		No. of shares
CHAN Ping		250,000
CHAN MA Yin Mei, Rebecca		250,000
		––––––
	Total:	500,000 ======

DIRECTORS

(As per registry dated 11-08-2012)

Name (Nationality)	Address
CHAN MA Yin Mei, Rebecca	Room B33, 21/F., Wah Lok Industrial Centre, 31-41 Shan Mei Street, Fotan, Shatin, New Territories, Hong Kong.
CHAN Ping	Room B33, 21/F., Wah Lok Industrial Centre, 31-41 Shan Mei Street, Fotan, Shatin, New Territories, Hong Kong.

SECRETARY

(As per registry dated 11-08-2012)

Name	Address
MA Chi Keung	Room B33, 21/F., Wah Lok Industrial Centre, 31-41 Shan Mei Street, Fotan, Shatin, New Territories, Hong Kong.

HISTORY

The subject was incorporated on 11th August, 2003 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 Manufacturer.

Lines: All kinds of hair products, etc.

Employees: 6.

Commodities Imported: Japan, South Korea, India, Europe, etc.

Markets: 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$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$500,000.00

Profit or Loss: Making a small profit every year.

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 500,000 ordinary shares of HK$1.00 each, South China Hair Products (HK) Ltd. is equally owned by Mr. Chan Ping and his wife, Chan Ma Yin Mei, Rebecca. Being Hong Kong merchants, they are also directors of the subject.

Incorporated in August 2003, the subject is one of the largest hair product’s manufacturers in Hong Kong.

The variety of production range from the supply of raw human hair to customaries hair products of wig, toupee and doll wig. It supplies a wide range of base materials and hair quality ranging from Euro hair, Indian hair, Chinese hair, etc. As for synthetic fibre wig, it supplies high quality kanekalon fibre from Japan, Toyo fibre and Korea fibre.

The followings are the main products of the subject:-

· Bristle & Hair (Human hair from China);

· Hair Accessories & Hair Care Items (Hair extension, hair weaving);

· Wigs - Human Hair; &

· Wigs - Synthetic Hair (Doll wig).

The subject has had an associated company South China Hair Co. [SCHC] which is also located at the same address. SCHC was established on 1st September, 1993. This firm is owned and operated by Ms. Ma Yin Mei. She got married to Mr. Chan Ping and changed her name to Chan Ma Yin Mei, Rebecca in June 2003.

The subject has had an associated factory in China known as Haifeng E’bu South China Hair Product Factory [E’bu South China] which is in Shanwei City, Guangdong Province, China.

E’bu South China is engaged in manufacturing all kinds of hairpiece and wigs. It started business in 1995 and currently employing about 180 employees.

The annual sales turnover of E’bu South China ranges from RMB150 to 170 million Yuan. Its fixed assets amounted to RMB65 million Yuan. The legal representative of E’bu South China is Mr. Miu Jin Tuan.

The business of the subject is chiefly handled by the couple.

The history of the subject in Hong Kong is over nine years.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.84
UK Pound	1	Rs.88.39
Euro	1	Rs.72.62

INFORMATION DETAILS

Report Prepared by :

PDT

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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