MIRA INFORM REPORT

Report Date :

29.10.2013

IDENTIFICATION DETAILS

Name :	TPE CORPORATION (HONG KONG) LTD.

Registered Office :	Unit C, 18/F., EGL Tower, 83 Hung To Road, Kwun Tong, Kowloon

Country :	Hongkong

Date of Incorporation :	03.10.2001

Com. Reg. No.:	32160315

Legal Form :	Private Limited Company

Line of Business :	Trading in printing equipment and supplies.

No. of Employees :	15. (Hong Kong - Including holding company)

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 :	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)

Hongkong

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

HONGKONG - 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

TPE CORPORATION (HONG KONG) LTD.

ADDRESS: Unit C, 18/F., EGL Tower, 83 Hung To Road, Kwun Tong, Kowloon, Hong Kong.

PHONE: 852-2419 1188, 2308 4047, 2308 4086-7

FAX: 852-2419 2998, 2308 4073

E-MAIL: tpecorp@tpe.com.hk

MANAGEMENT

Managing Director: Mr. Fung Ming Kin, Kenneth

SUMMARY

Incorporated on: 3rd October, 2001.

Organization: Private Limited Company.

Capital: Nominal:HK$9,210,000.00

Issued: HK$9,210,000.00

Business Category: Trading in printing equipment and supplies.

Annual Turnover: HK$320~350 million.

Employees: 15. (Hong Kong - Including holding company)

Main Dealing Banker: DBS Bank (Hong Kong) Ltd., Hong Kong.

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Unit C, 18/F., EGL Tower, 83 Hung To Road, Kwun Tong, Kowloon, Hong Kong.

Holding Company:

TPE Corporation Ltd., Hong Kong. (Same address)

China Factory:-

TPE Corporation (Shanghai) Ltd.

388 Guangzhong Road, Zhuanqiao Industrial Area, Minhang, Shanghai 201108, China.

[Tel: (86-21) 6442 6616; Fax: (86-21) 6442 6676]

China Warehouse:-

TPE Corporation (Shanghai) Ltd. Dongguan Warehouse

64 Dezheng Lu, Changan Town, 523840 Dongguan City, Guangdong Province, China.

[Tel: (86-769) 8533 0516]

Overseas Office:-

TPE Corporation (Hong Kong) Ltd. Singapore Representative Office

46 Lor 17 Geylang Road, #05-01 Enterprise Industrial Building, Singapore 388568.

[Tel: 65-6745 6028; Fax: 65-6745 0579]

BUSINESS REGISTRATION NUMBER

32160315

COMPANY FILE NUMBER

0771621

MANAGEMENT

Managing Director: Mr. Fung Ming Kin, Kenneth

CAPITAL

Nominal Share Capital: HK$9,210,000.00 (Divided into 9,210,000 shares of HK$1.00 each)

Issued Share Capital: HK$9,210,000.00

SHAREHOLDERS

(As per registry dated 03-10-2013)

Name		No. of shares
TPE Corporation Ltd., Hong Kong.		9,209,999
FUNG Ming Kin		1
		––––––––
	Total:	9,210,000 =======

DIRECTORS

(As per registry dated 03-10-2013)

Name

(Nationality)

Address

FUNG Ming Kin

Flat C, 18/F., EGL Tower, 83 Hung To Road, Kwun Tong, Kowloon, Hong Kong.

TPE Corporation Ltd.

Flat C, 18/F., EGL Tower, 83 Hung To Road, Kwun Tong, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 03-10-2013)

Name	Address
CHAN Wai Hong	Flat C, 18/F., EGL Tower, 83 Hung To Road, Kwun Tong, Kowloon, Hong Kong.

HISTORY

The subject was incorporated on 3rd October, 2001 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Winsway Industries Ltd., name changed to TPE Ink And Chemical Ltd. on 7th November, 2001, changed to TPE (Shanghai) Ltd. on 5th June, 2002 and further to the present style on 29th January, 2003.

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

OPERATIONS

Activities: Trading in printing equipment and supplies.

Lines: All kinds of printing equipment and supplies including printing ink, OPP pre-printing films, plastic films, plastic fabrics, PS boards, soluble brightening oil, scraping knives

Brand Name: TPE.

Employees: 15. (Hong Kong - Including holding company)

40. (China)

Commodities

Imported: Imported from USA, Japan, European countries, etc.

Markets: Hong Kong, China, Macau, Southeast Asia, etc.

Annual Turnover: HK$320~350 million.

Terms/Sales: COD or as per contracted.

Terms/Buying: L/C, T/T, D/P, etc.

MEMBERSHIP: Graphics Arts Association of Hong Kong, Hong Kong.

The Chinese Manufacturers’ Association of Hong Kong, Hong Kong.

The Hong Kong Printers Association, Hong Kong.

The Hong Kong Printers Investment Association Ltd., Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$9,210,000.00 (Divided into 9,210,000 shares of HK$1.00 each)

Issued Share Capital: HK$9,210,000.00

Profit & Loss: Making a small profit every year.

Condition: Business is active and steady.

Facilities: Making rather active use of general banking facilities.

Payment: Met as required.

Commercial Morality: Satisfactory.

Bankers:-

DBS Bank (Hong Kong) Ltd., Hong Kong.

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

Standing: Normal.

GENERAL

TPE Corporation (Hong Kong) Ltd. is a wholly-owned subsidiary of TPE Corporation Ltd. [TPECL], a Hong Kong-registered firm located at the same address.

The subject and TPECL are engaged in the same lines of business.

TPECL is a private limited company mainly controlled by Mr. Fung Ming Kin who is a Hong Kong merchant. He is also managing director of the subject.

TPECL was founded by four technicians from the printing industry in April 1994.

TPECL is engaged in importing and wholesaling printing equipment and supplies which are mainly imported from the United States, Japan and the European countries. Commodities carried include printing ink and other accessories. Most of the commodities bear the trade mark of “TPE”. Hong Kong, China and Singapore are its prime markets.

In 2002, TPECL established a factory in Shanghai manufacturing printing machinery and equipment. Main products include “TPE” stackers, collator, binder and trimmer, window patching machines, UV, IR dryers and powder spray systems, computer plating systems, automatic laminating machines

The Shanghai Corporation has set up a warehouse in Dongguan City, Guangdong Province, China.

In 2004, the subject established a representative office in Singapore promoting its stackers worldwide. The Shanghai company set up an office in Shenzhen Special Economic Zone, China; however, the Shenzhen Office seemed has been closed down. In total, there are about 40 employees in China.

The subject is engaged in the following business scope:-

· Sales and Marketing in Greater China through sales-partnership with world class graphic art equipment manufacturers from the United States, Europe and Japan;

OEM Manufacturing for GBC fully automatic laminating machine;

TPE compensating stackers and book stackers; &

Value Added Print Supplies of (A) GBC thermal OPP slitting and rewinding and (B) Water Base Coating blending.

Significant trade marks carried by the subject and partners include the followings: sti Systems Technology Inc., In-Log, Agfa, FERAG, GBC Professional, wohlenberg, SmartStack, UniDrum, (HS) Heiber + Schroder, GRAFIX Company, WST, etc.

The products carried by the subject include TPE Stackers, GBC Thermal OPP and Layflat film & Laminating Machines, Wohlenberg Perfect Binding System, etc. The subject also distributes the following commodities:-

· Agfa pre-press system and plates;

Cold Set Newspaper Web Offset Inks (made in UK);

Ferag Mailroom System;

Grafix powder sprayer and UV/IR drying system;

Heat Set Web Offset Inks (made in UK);

Heiber + Schroder Window Patching System and Carton erecting machine;

Ink Roller and Blanket Washes;

IN-Log print finishing system;

Kinyo Offset Blanket;

Oxidation Drying Sheet Fed Offset Ink for printing on Foils and non‑absorbent substrates;

SmartStack;

Solco Press Chemical (made in Belgium and Germany);

Special Chemicals;

Standard Process Sheet Fed Ink for Straight & Perfecting Printing;

Sugano automatic die-cutter and box folder and gluer;

Systems Technology Inc. [STI];

UniDrum;

Water Base Coating (made in Germany;

Winstar Offset Printing Inks (made in Germany); &

WST Systemtechnik GmbH Control System.

The subject’s Shanghai company has been participating exhibitions and fairs held in China in order to penetrate the China markets further.

Having a history of over twelve years, the subject’s buyers are mainly Hong Kong printing factories or firms which have got affiliated printing factories in China or local China printing factories. Competitions in the line of business are acute.

In May 2009, the subject’s highlight was the launch of the new High Speed compensating stacker 925, of which the customers of the subject have shown interest. The subject also has launched many new models which are competitive in prices since early 2009.

The annual sales turnover of the subject and its associates ranges from HK$320 to 350 million.

On the whole, consider the subject good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.50
UK Pound	1	Rs.99.94
Euro	1	Rs.84.88

INFORMATION DETAILS

Report Prepared by :

NIT

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.