MIRA INFORM REPORT

Report Date :

05.11.2012

IDENTIFICATION DETAILS

Name :	RISEN FOOTWEAR (HK) CO. LTD.
Registered Office :	Suite 2301-2, Lever Tech Centre, 69-71 King Yip Street, Kwun Tong, Kowloon
Country :	Hong Kong
Date of Incorporation :	24.06.2001
Com. Reg. No.:	31905045
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Manufacturer of all kinds of footwear.
No. of Employees :	15

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

RISEN FOOTWEAR (HK) CO. LTD.

Company ADDRESS

Suite 2301-2, Lever Tech Centre, 69-71 King Yip Street, Kwun Tong, Kowloon, Hong Kong.

PHONE: 2367 7727

FAX: 2367 7609

E-MAIL: aris@rizonte.com.hk

pat@rizonte.com.hk

MANAGEMENT

Managing Director: Mr. Fung Che Keung, Patrick

SUMMARY

Incorporated on: 24th June, 2001.

Organization: Private Limited Company.

Capital: Nominal: HK$100,000.00

Issued: HK$14,706.00

Business Category: Footwear Trader.

Employees: 15.

Main Dealing Banker: Chiyu Banking Corporation Ltd., Hong Kong.

Banking Relation: Satisfactory.

Company name

RISEN FOOTWEAR (HK) CO. LTD.

Company ADDRESS

Registered Head Office:-

Suite 2301-2, Lever Tech Centre, 69-71 King Yip Street, Kwun Tong, Kowloon, Hong Kong.

China Factory:-

Risen Footwear (Dongguan) Co. Ltd., China.

Associated Company:-

Top Sun Manufacturing Co. Ltd., Hong Kong. [Dissolved]

BUSINESS REGISTRATION NUMBER

31905045

COMPANY FILE NUMBER

0761679

MANAGEMENT

Managing Director: Mr. Fung Che Keung, Patrick

CAPITAL

Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

Issued Share Capital: HK$14,706.00

SHAREHOLDERS

(As per registry dated 27-06-2012)

Name		No. of shares
FUNG Che Keung, Patrick		6,375
GOH Chiang Peng, Dorothy		3,625
Willem Hendrik Peter HEERKENS		625
Petrus Willem Johannes HEERKENS		625
Peter Cornelis Johannes HEERKENS		625
Maria Adriana Dymphina HEERKENS		625
[to be continued]
[continued]
YIP Kwong Kan		1,471
CHAN Pei Cheong, Andy		735
		––––––
	Total:	14,706 =====

DIRECTORS

(As per registry dated 27-06-2012)

Name (Nationality)	Address
GOH Chiang Peng, Dorothy	1B River North 9 Street, Fairview Park, Yuen Long, New Territories, Hong Kong.
FUNG Che Keung, Patrick	43 Lychee Road North, Fairview Park, Yuen Long, New Territories, Hong Kong.

SECRETARY

GOH Chiang Peng, Dorothy (As per registry dated 27-06-2012)

HISTORY

The subject was incorporated on 24th June, 2001 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 footwear.

Employees: 15.

Commodities/Materials: Imported from European countries, some of the Asian countries and finished products from China.

Markets: Asian countries, Europe, North America, Central & South America, etc.

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

Terms/Buying: L/C, D/P, O/A, etc.

MEMBERSHIP

Hong Kong Footwear Association, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

Issued Share Capital: HK$14,706.00

Mortgage or Charge: (See attachment)

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.

Bankers:-

Chiyu Banking Corporation Ltd., Hong Kong.

Citibank N.A., Hong Kong Branch.

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

Nanyang Commercial Bank Ltd., Hong Kong.

DBS Bank (Hong Kong) Ltd., Hong Kong.

Standing: Good.

GENERAL

Having issued 14,706 ordinary shares of HK$1.00 each, Risen Footwear (HK) Co. Ltd. is jointly owned by a number of Hong Kong and foreign merchants. The main shareholders are Mr. Fung Che Keung, Patrick, holding 43.3% interests; Ms. Goh Chiang Peng, Dorothy, holding 24.6%.

The subject is a footwear manufacturer and trader. Its associated factory Risen Footwear (Dongguan) Co. Ltd. [Dongguan Risen] is in Dongguan City, Guangdong Province, China. The China factory currently is employing about 1,200 persons and covers an area of 20,000 sq.m.

The registered capital of Dongguan Risen was HK$40 million.

Formerly the China factory was known as Shangsha Jinjin Footwear Factory [Jinjin] which was set up in 2001. Jinjin changed name to the present one in 2006.

Dongguan Risen is engaged in manufacturing all kinds of leather shoes which are claimed to be high-end. It is an OEM manufacturer carrying the following brand names: LVMH, CK, ARMANI, CROCS, ALBA, etc. The subject also has other foreign partners such as Dolcis, Hist, etc.

In 2007, the subject started manufacturing its own branded ladies’ products ‑ Orizonte and Che Sera. Orizonte and Che Sera shoes are marketed in China and exported to foreign markets.

The subject has set up selling counters in large cities such as Shanghai, Wuxi, Wuhan, Hangzhou, etc.

At present about 5% of the subject’s footwear are sold in China while 95% are exported to international markets. Belgium is one of its main markets.

Mr. Fung Che Keung, Patrick was also the managing director of Top Sun Manufacturing Co. Ltd. [Top Sun] which was also a footwear manufacturer and trader in Hong Kong. However, this firm has been dissolved.

The subject’s business is profitable.

As the history of the subject is over eleven years and four months in Hong Kong, on the whole, consider it good for normal business engagements.

MORTGAGE OR CHARGE

Date	Particulars	Amount
21-08-2009	Instrument: Deed of Indemnity, Charge Over Deposit(s) and Set-Off (the “Deed”) Property: All the fixed deposit(s) and/or call deposit(s) of whatever nature and in whatever currency now or at any time hereafter maintained or to be maintained by me/us with the Bank under the following customer number:- Customer Number: 039-0237313-2 Mortgagee: Chiyu Banking Corporation Ltd., Hong Kong.	All moneys in respect of general banking facilities
05-01-2010	Instrument: Deposit Deed Property: By way of first fixed charge and as a continuing security for the Obligations, the Company charges and assigns absolutely all its rights, title to and interest in the Accounts and all Deposits Mortgagee: Citibank N.A., Hong Kong Branch.	All moneys now or at any time in the future owing by the Company
26-05-2010	Instrument: Assignment of DC Proceeds Property: 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 Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	All loans or other advances made or to be made by the Bank against documents submitted under a Documentary Credit
03-11-2010	Instrument: Charge on Deposits Property: Fixed deposit of HK$1,000,000, Deposit Number: 043‑473-5-909554-6 issued by Nangyang Commercial Bank, Ltd. to the Company as depositor and all interest thereon and renewals therof and any addition thereto. Mortgagee: Nanyang Commercial Bank Ltd., Hong Kong.	To secure all moneys, obligations and liabilities
10-01-2011	Instrument: Charge on Cash Deposit(s) to secure Liabilities of the Depositor(s) (“Charge”) Property: 1. By way of first fixed charge and agreement to charge: the Deposit and all right, title and interest of the Company whatsoever, present and future, thereto and therein, together with any certificates of deposit or other instruments or securities evidencing title, or otherwise relating, thereto and any account to which the same is credited 2. By way of set-off: any sum standing to the credit of any one or more of the accounts of the Company with the Bank Mortgagee: DBS Bank (Hong Kong) Ltd., Hong Kong.	All sums of money and liabilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.66
UK Pound	1	Rs.86.36
Euro	1	Rs.69.24

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%)

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.