MIRA INFORM REPORT

Report Date :

08.11.2013

IDENTIFICATION DETAILS

Name :	K K FOOD TRADING CO. LTD.
Registered Office :	Unit B, 14/F., CNT Commercial Building, 302 Queen’s Road Central, Sheung Wan
Country :	Hong Kong
Date of Incorporation :	12.05.1989
Com. Reg. No.:	12747951
Legal Form :	Private Limited Company.
Line of Business :	Foodstuff trader like Kitchen Utensils - Metal, Kitchen Utensils, frozen aquatic products.
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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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

K K FOOD TRADING CO. LTD.

Company ADDRESS

Unit B, 14/F., CNT Commercial Building, 302 Queen’s Road Central, Sheung Wan, Hong Kong.

PHONE: 852-2511 0600

FAX: 852-2827 2031

E-MAIL: helena@kkfoodhk.com

info@kkfoodhk.com

kkfood@kkfoodhk.com

milton@kkfoodhk.com

MANAGEMENT

Managing Director: Mr. Stefan Klindwort

SUMMARY

Incorporated on: 12th May, 1989.

Organization: Private Limited Company.

Capital: Nominal: HK$12,000,000.00

Issued: HK$12,000,000.00

Business Category: Foodstuff trader.

Employees: 6. (Including associate)

Main Dealing Banker: Deutsche Bank AG, Hong Kong Branch.

Banking Relation: Good.

Company name

K K FOOD TRADING CO. LTD.

Company ADDRESS

Registered Head Office:-

Unit B, 14/F., CNT Commercial Building, 302 Queen’s Road Central, Sheung Wan, Hong Kong.

China and Overseas Offices:-

Xiamen Special Economic Zone, Qingdao, Ho Chi Minh City, Manila, New Delhi.

Associated Companies:-

Instylo Co. Ltd., Hong Kong. (Same address)

Kreyenhop & Kluge GmbH & Co. KG

Industriestraße 40-42, 28876 Oyten, Germany.

[Tel: +49 4207 / 604 - 0

Fax: +49 4207 / 604 - 185

E-mail: kreyenhop@kreyenhop.de]

BUSINESS REGISTRATION NUMBER

12747951

COMPANY FILE NUMBER

0252210

MANAGEMENT

Managing Director: Mr. Stefan Klindwort

Contact Person: Ms. Helena Chan

CAPITAL

Nominal Share Capital: HK$12,000,000.00 (Divided into 1,200,000 shares of HK$10.00 each)

Issued Share Capital: HK$12,000,000.00

SHAREHOLDERS

(As per registry dated 12-05-2013)

Name		No. of shares
Joern KREYENHOP		400,000
Tom Gerrit KREYENHOP		400,000
Rolf KREYENHOP		200,000
Antje KREYENHOP		200,000
		––––––––
	Total:	1,200,000 =======

DIRECTORS

(As per registry dated 26-05-2013)

Name (Nationality)	Address
Tom Gerrit KREYENHOP	Scharnhorststrasse 194, 28211 Bremen, Germany.
Joern KREYENHOP	Eekenhoege 18, 28355 Bremen, Germany.
Stefan KLINDWORT	Flat G, 18/F., Tower 3, The Belcher’s, 89 Pok Fu Lam Road, Hong Kong.

SECRETARY

(As per registry dated 12-05-2013)

Name	Address	Co. No.
Vantop Ltd.	G/F., 5E Grampian Road, Kowloon City, Kowloon, Hong Kong.	0387708

HISTORY

The subject was incorporated on 12th May, 1989 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: Foodstuff trader.

Lines: Kitchen Utensils - Metal, Kitchen Utensils, frozen aquatic products.

Employees: 6. (Including associate)

Commodities Imported: China, India, Southeast Asia, other Asian countries, Europe, etc.

Markets: Germany, the other European countries, North America, etc.

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

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$12,000,000.00 (Divided into 1,200,000 shares of HK$10.00 each)

Issued Share Capital: HK$12,000,000.00

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.

Banker: Deutsche Bank AG, Hong Kong Branch.

Standing: Normal.

GENERAL

Having issued 1.2 million ordinary shares of HK$10.00 each, K K Food Trading Co. Ltd. is jointly owned by four Germany merchants.

The subject was established in Hong Kong in 1989 as a representative office & quality control office of Kreyenhop & Kluge GmbH [Kreyenhop & Kluge] & Co. KG, Bremen, Germany.

The managing director Stefan Klindwort, who is a German, is residing in Hong Kong.

The subject shares the same office with its associated company Instylo Co. Ltd. which is a Hong Kong-registered firm.

The subject is specialized in sourcing and marketing of frozen, dried, canned foodstuffs, food ingredients & raw materials needed by the food processing industry, including Asian culinary specialties & ethnic convenience food. Besides acting in procurement for the German parent company only, the subject has developed as an internationally active trading company serving customers worldwide.

The subject is sourcing form a selected group of suppliers throughout Asia including China, which has emerged as the largest source for frozen foodstuffs. Biggest relevance for packed & branded retail products & processed foods have Thailand still, whereas Vietnam is important for ethnic food specialties sauces and instant snack product.

The subject is trading in the following commodities:-

Kitchen Utensils - Metal, Kitchen Utensils - Misc., Chopsticks, Seafood - Frozen (Frozen from South East Asia, China), Canned Food (From Thailand, Malaysia, Philippines, China), Sauce & Seasoning, Wine - Chinese, Noodle, Rice Vermicelli, Rice Cooker, Fruits (Frozen from South East Asia, China), Vegetables (Frozen from South East Asia, China), etc.

By operating quality control offices in Xiamen, Qingdao of China and Ho Chi Minh City of Vietnam, the subject foodstuffs are supplied by Asian countries and has developed an extensive product line designed to satisfy the specific needs of its customers which range from retail organizations, food processors & food importer to local catering & wholesale companies worldwide.

In recent years, the business of non-food products such as tabletop items, interior decoration, gifts, house-ware products & handicraft items have significantly contributed to the subject’s growth an meanwhile is a major line of business. The most important markets for products of this range are Vietnam, China & Indonesia.

Since 2006 the dealing in non-food items has been handled under the company name of Instylo Co., Ltd., Hong Kong.

At the location Oyten, Kreyenhop & Kluge possesses a total capacity for storage of 17,000 palettes for food and non-food-articles. The modern deep‑freeze warehouse is able to hold 4,000 palettes at a temperature of 21°C. Next to a palette shelf system, an import system and block storage possibilities are available. The storage control is done in combination with a merchandise information system according to strict MSL points.

The assortment range includes approximately 2.000 articles. Over 80% are imported goods. From goods entry over storage to goods exit the logistic process in the company is supported through radio technology.

Kreyenhop & Kluge owns 14 trucks and additional forwarding agencies transport the orders to its customers throughout the entire country and the adjoining European states.

The subject is able to make a profit every year. As the history of the subject is over 24 years in Hong Kong, on the whole, consider it good for normal business engagements.

MORTGAGE OR CHARGE

Date	Particulars	Amount
30-07-2010	Instrument: Assignment of Term Deposit (Primary Debtor) executed by the Borrower in favour of Deutsche Bank Aktiengesellschaft Property: By way of assignment and charge of the Deposit 1) All the deposit of the borrower at the date of the Assignment or thereafter placed with the Bank at its hong kong branch in deposit Account No. 0002022 and any renewal or extension thereof; 2) Any other amount or amounts deposited with the Bank after the date of the assignment from time to time either in substitution for or in addition to the aforementioned deposit, and 3) All interest accrued and accruing on the aforesaid sums from time to time Mortgagee: Deutsche Bank Aktiengesellschaft, Hong Kong Branch.	To secure the discharge and satisfaction of the liabilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.57
UK Pound	1	Rs.100.62
Euro	1	Rs.84.62

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%)

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.