MIRA INFORM REPORT

Report Date :

13.11.2013

IDENTIFICATION DETAILS

Name :	BOAST INTERNATIONAL LTD.

Registered Office :	Room 1803-1804, 18/F., CRE Centre, 889 Cheung Sha Wan Road, Kowloon

Country :	Hong Kong

Date of Incorporation :	05.01.2001

Com. Reg. No.:	31513072

Legal Form :	Private Limited Company

Line of Business :	Manufacturer, Importer and Exporter of all kinds of protective shoes and apparels

No. of Employees :	16

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 :	Good

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

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 & address

BOAST INTERNATIONAL LTD.

ADDRESS : Room 1803-1804, 18/F., CRE Centre, 889 Cheung Sha Wan Road, Kowloon, Hong Kong.

PHONE : 852-3527 0238, 8201 7886, 8207 6887

FAX : 852-3527 0239, 2307 6926

E-MAIL : maggieching@boasthk.com

boastadmin@boasthk.com

raymond@boasthk.com

MANAGEMENT

Managing Director : Mr. Ching Lung Kei, Tommy

SUMMARY

Incorporated on : 5th January, 2001.

Organization : Private Limited Company.

Capital: Nominal : HK$1,000,000.00

Issued : HK$1,000,000.00

Business Category : Manufacturer, Importer and Exporter.

Employees : 16.

Main Dealing Banker : Hang Seng Bank Ltd., Hong Kong.

Banking Relation : Satisfactory.

Company name & address

BOAST INTERNATIONAL LTD.

ADDRESS:

Registered Head Office:-

Room 1803-1804, 18/F., CRE Centre, 889 Cheung Sha Wan Road, Kowloon, Hong Kong.

China Factories:-

Zhongshan Boast Safetech Protective Equipment Co. Ltd.,

Tower B, Lixi Road, Shunjing Industrial Zone, Banfu Town, Zhongshan City, Guangdong Province, China.

[Tel: 86-760-8651 4688; Fax: 86-760-8651 6268]

Zhongshan LKC Shoes Manufacturing Co. Ltd.,

Tower A, Lixi Road, Shunjing Industrial Zone, Banfu Town, Zhongshan City, Guangdong Province, China.

[Tel: 86-760-8651 1288; Fax: 86-760-8651 1386]

Jiujiang Boast Shoes & Garments Manufacturing Co. Ltd.,

Ruichang Industrial Zone, Ruichang City, Jiangxi Province, China.

[Tel: 86-792-487 1689; Fax: 86-792-421 9698]

Zhongshan Foundation Footwear Co. Ltd.,

142 Qingxi Road, Banfu Town, Banfu Town, Zhongshan City, Guangdong Province, China.

[Tel: 86-760-8651 1288; Fax: 86-760-8123 4567]

BUSINESS REGISTRATION NUMBER

31513072

COMPANY FILE NUMBER

0743317

MANAGEMENT

Managing Director : Mr. Ching Lung Kei, Tommy

Sales Manager: Ms. Maggie Ching

Contact Persons : Mr. Raymond Lee, Ms. May Tsui

CAPITAL

Nominal Share Capital: HK$1,000,000.00

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

Issued Share Capital: HK$1,000,000.00

SHAREHOLDERS

(As per registry dated 05-01-2013)

Name		No. of shares
CHING Lung Kei, Tommy		990,000
CHOW Wai Lin		10,000
		––––––––
	Total:	1,000,000 =======

DIRECTORS

(As per registry dated 05-01-2013)

Name

(Nationality)

Address

CHING Lung Kei, Tommy

(Previous Name: CHING Lung Kei, Tommy)

House 186, Boulevard Du Lac, The Beverly Hills, 23 Sam Mun Tsai Road, Tai Po, New Territories, Hong Kong.

CHOW Wai Lin

House 186, Boulevard Du Lac, The Beverly Hills, 23 Sam Mun Tsai Road, Tai Po, New Territories, Hong Kong.

SECRETARY

(As per registry dated 05-01-2013)

Name	Address	Co. No.
Active Corporate Services Ltd.	Room 1001-1003, 10/F., Manulife Provident Funds Place, 345 Nathan Road, Kowloon, Hong Kong.	0575595

HISTORY

The subject was incorporated on 5th January, 2001 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subejct was located at Room 1705, 17/F., CRE Centre, 889 Cheung Sha Wan Road, Kowloon, Hong Kong, moved to Room 1803‑1804, 18/F. of the same building in May 2009.

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

OPERATIONS

Activities : Manufacturer, Importer and Exporter.

Lines : All kinds of protective shoes and apparels.

Employees : 16.

Materials/Commodities : Imports raw materials from European countries, some Asian countries and finished products from China.

Markets : China, other Asian countries, Europe, North & South America, Australia

Terms/Sales : L/C or as per contracted.

Terms/Buying : L/C, D/P

MEMBERSHIP : Federation of Hong Kong Industries, Hong Kong. [Member No. A8837]

Hong Kong Footwear Association, Hong Kong.

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$1,000,000.00

Profit or Loss: Making a small profit every year.

Condition: Keeping in an active manner.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Banker: Hang Seng Bank Ltd., Hong Kong.

Standing: Good.

GENERAL

Having issued 1 million ordinary shares of HK$1.00 each, Boast International Ltd. is jointly owned by Mr. Tommy Ching Lung Kei, holding 99% interests; and his wife Ms. Chow Wai Lin, holding just 1%.

The subject has its own production facilities in Zhongshan City, Guangdong Province, China. The factories are engaged in products development and production for certified personal protective products [PPE], including safety footwear and safety garments. The subject’s modern production plants, equipped with its advanced production set-up and its facilitated testing laboratory, are able to ensure the quality of its products is up to the international standards.

One of the subject’s significant factories Zhongshan Foundation Footwear Co. Ltd. [Foundation] was set up in 2001. Its annual sales turnover ranges from RMB 220 to 230 million Yuan. Foundation has over 700 worker.

The protective products of the subject are designed with its innovative insight of the market, and developed according to its years of experience and understanding of the International Safety standards. “Boast” is gradually becoming a well-known brand, and its products are recognized by most of the safety authorities worldwide, including those of Europe, the United States, Canada, and as well as China. The subject has got the following certificates: ISO 9001, EN ISO 20345, ASTM, CSA.

The major markets of the subject’s protective products include Hong Kong, Macao, Taiwan, South Korea, India, Jordan, Lebanon, Malaysia, Nepal, Southeast Asia, the Middle East, Europe and the United States including more than 50 regions and countries of the world.

The followings are the subject’s principal customers:

Dewalt, Good Year, Quilksilver, Lacrosse, Marks Warehouse

Besides footwear, the subject is also engaged in manufacturing protective clothing for fire fighting industry, electrical industry.

The subject has had three factories in Zhongshan City, Guangdong Province and one in Ruichang City, Jiangxi Province, China. Total employees are over 1,700. Overall business is active. Annual sales turnover is significant.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.59
UK Pound	1	Rs.101.56
Euro	1	Rs.85.15

INFORMATION DETAILS

Report Prepared by :

NNA

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.