MIRA INFORM REPORT

Report Date :

28.10.2013

IDENTIFICATION DETAILS

Name :	FORTUNE SHIP TECHNOLOGY (HK) LTD.
Registered Office :	Suite A, 11/F., Ho Lee Commercial Building, 38-44 D’Aguilar Street, Central,
Country :	Hong Kong
Date of Incorporation :	01.03.2012
Com. Reg. No.:	59470498
Legal Form :	Private limited liability company
Line of Business :	Subject is trading mobile phones, electronic products, electronic devices.
No. of Employees :	No employees in Hong Kong NOTE: It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	No operating office in Hong Kong
Payment Behaviour :	Unknown
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 and address

FORTUNE SHIP TECHNOLOGY (HK) LTD.

ADDRESS

Registered Office:-

c/o Alpha Partners

Suite A, 11/F., Ho Lee Commercial Building, 38-44 D’Aguilar Street, Central, Hong Kong.

Holding Companies:-

Shenzhen Fortune Ship Technology Co. Ltd.

Room 401, A-B District, TCL King Electronics Company, No. 33 Nanhai Road, Nanshan District, 518067 Shenzhen, China.

[Tel: 86-755-21608600 or 86-755-21608678

Fax: 86-755-26027070

Email: cngdsznslyz@163.com]

Associated Company:-

Huizhou Fortune Ship Technology Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

59470498

COMPANY FILE NUMBER

1711624

DATE OF ESTABLISHMENT

1st March, 2012.

CAPITAL

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

SHAREHOLDER: (As per registry dated 01-03-2013)

Name	No. of shares
Shenzhen Fortune Ship Technology Co. Ltd. No. 401, A B District, TCL Ace Electronics Company, No. 33 Nanhai Road, Nanshan District, Shenzhen, China.	10,000 =====

DIRECTOR: (As per registry dated 01-03-2013)

Name (Nationality)	Address
YAO Jiang Chao	No. 2 Lejin Road West, Huicheng District, Huizhou City, Guangdong Province, China.

SECRETARY: (As per registry dated 17-03-2013)

Name	Address	Co. No.
Worldtrade Business Consulting (HK) Ltd.	Flat A, 7/F., Kwun Ngan House, 751A Nathan Road, Mongkok, Kowloon, Hong Kong.	1004807

MORTGAGE OR CHARGE

(See attachment)

HISTORY

The subject was incorporated on 1st March, 2012 as a private limited liability company under the Hong Kong Companies Ordinance.

Initially the subject’s registered address was located at c/o Conson Secretarial Ltd., Room 703, 7/F., Kowloon Building, 555 Nathan Road, Kowloon, Hong Kong, moved to the present address with effect from 17th March, 2012, as the subject has changed its commercial service provider.

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

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Fortune Ship Technology (HK) Ltd. is wholly owned by Shenzhen Fortune Ship Technology Co. Ltd. [SFST] which is a China-based firm.

The only director of the subject Mr. Yao Jiang Chao is a China merchant. He is a China ID Card holder and does not have the right to reside in Hong Kong permanently.

The subject does not have its own operating office. Its registered office is in a commercial service firm located at Suite A, 11/F., Ho Lee Commercial Building, 38-44 D’Aguilar Street, Central, Hong Kong known as Alpha Partners which is handling its correspondences and documents. It has no employees in Hong Kong.

Your given phone number 86-755-8609 5550 and fax number 86-755-8609 5551 do not belong to SFST. They belong to a firm known as Shenzhen Tinno Mobile Technology Corp. [Tinno]. We do not know the relation between SFST and Tinno.

Yao Jiang Chao is the legal representative and operator of SFST.

SFST is trading in the following commodities: mobile phones, electronic products, electronic devices

Commodities are sourced from China, prime markets are China, Japan, other Asian countries, Europe, etc.

It has been committed to provide advanced wireless communication devices, services and total solutions to global users via its solid ID/MD, HW/SW design, PCBA manufacturing, Testing, QA and a complete set of mobile terminal solution since May, 2011.

The subject has registered with the Office of the Communications Authority (OFCA), The Government of Hong Kong SAR, the People’s Republic of China as a Radio Dealer (Unrestricted) Licensee. The subject bears the licence No. of RU00152962-RU.

In late 2011, SFST decided to build a factory in Huizhou City, Guangdong Province, China. Having a site area of about 30,000 sq.m., this firm is known as Huizhou Fortune Ship Technology Co. Ltd. [Huizhou Fortune Ship].

Huizhou Fortune Ship commenced business on 30th March, 2012. On 7th July, 2012, this firm got ISO9001:2008 certification.

According to the subject, the monthly export of Huizhou Fortune Ship is about 1.5 million handsets.

Fortune Ship has 8 production bases, a total of 80 SMT lines and 60 assembly lines. There are nearly 20,000 sq.m. and more than 1,500 workers in Huizhou Fortune Ship factory. The company has introduced many advanced technologies and facilities from overseas, such like FUJI (XP series, NXT series chip mounter), MPM UP2000 printer, JT, Reflow oven, EL-EM5700N automatic sub-board machine, X-RAY, thickness measurement, and so on.

Moreover, Huizhou factory will strengthen the products line, ensure quality continuously, and provide high quality after-sales service, to make it one of the most competitive companies in communication industry.

In order to penetrate the international market further, SFST has taken part in fairs and exhibitions held in China and the other foreign large cities. For instance it took part in “MOBILE WorldCongree Barcelona 2013” which was held in Barcelona, Spain. It will take part in the same fair in 2014.

It is likely that SFST deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong. SFST also exports mobile phones to foreign markets under the name of the subject and its registered address in Hong Kong.

The subject’s business in Hong Kong is not active. History, which is short, in Hong Kong is just over a year.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

MORTGAGE OR CHARGE

Date	Particulars	Amount
27-12-2012	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 Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	All loans or other advances made or too 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

NOTE:

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.63
UK Pound	1	Rs.99.94
Euro	1	Rs.85.14

INFORMATION DETAILS

Report Prepared by :

NIS

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.