MIRA INFORM REPORT

Report Date :

04.12.2014

IDENTIFICATION DETAILS

Name :	SOUTHFIRM LIMITED

Registered Office :	Unit D, E and H, 16/F, Blk B, Marvel Ind. Building, 17-25 Kwai Fung Crescent, Kwai Chung, New Territories

Country :	Hong Kong

Date of Incorporation :	08.09.1987

Com. Reg. No.:	11334341

Legal Form :	Private Limited Liability Company

Line of Business :	Trading of Chemical Products.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

Source : CIA

Company Name and address

Company Name (in English):	Southfirm Limited
Supplied Name:	Southfirm Ltd.
Trading Address:	Unit D, E & H, 16/F, Blk B, Marvel Ind. Bldg, 17-25 Kwai Fung Crescent, Kwai Chung, New Territories, Hong Kong
Supplied Address:	Flat E, 16/F, Block B, Marvel Ind Building, 17-25 Kwai Fung Crescent Kwai Chung N. T.

Note: The exact name and address are as above.

Company Identification Details

Registered Name:	Southfirm Limited
Registered Address:	Unit D, E & H, 16/F, Blk B, Marvel Ind. Bldg, 17-25 Kwai Fung Crescent, Kwai Chung, New Territories, Hong Kong
Telephone Number:	+852-2429-7269/2429-7261
Fax Number:	+852-2480-4473
Date of Registration:	1987-9-8
Registered Number:	198034
Business Registration No.:	11334341
Registered Capital:	HKD 300,000 (USD 38,700) (As of 2014.11, 1 HKD = 0.129 USD)
Paid-up Capital:	HKD 300,000 (USD 38,700) = 300,000 Shares@ HKD 1
Legal Form:	Private Limited Liability Company
SITC Code:	59899--Other chemical products and preparations.
Principal Activities:	Trading of chemical products and etc.
Staff:	N/A
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-9-8

Notes: Subject declined to disclose its staff number; from other source we cannot obtain the relevant information, either.

History

Subject was incorporated on 1987-9-8 with the registered number 198034 as Private Limited Liability Company in Hong Kong.

Corporate Structure

Related Companies

Name:	DongGuan Haoli Fine Chemicals Company Ltd
Address:	Datang Zone Daling Shan Town, DongGuan City, GuanDong Province, the mainland of China
Tel:	+86-769-3351634/769-3351742
Fax:	+86-769-3351614
E-mail:	sales@loyalenterprise.com

Shareholders

Name	Subscription Shares	Proportion of Investment (%)
Liem Heng Bing	60,000	20.00%
Chang Hwie Chen	60,000	20.00%
Lim Hoi Wan	60,000	20.00%
Fu Miao Chin	60,000	20.00%
Lam Yin	30,000	10.00%
Lam Lee	30,000	10.00%
Total	300,000	100%

Major Shareholder Information:

1
Name:	Liem Heng Bing
Address:	Flat 10, 11^th Floor, Block J, Kormhill, Quarry Bay, Hong Kong
2
Name:	Chang Hwie Chen
Address:	Flat 10, 11^th Floor, Block J, Kormhill, Quarry Bay, Hong Kong
3
Name:	Lim Hoi Wan
Address:	Flat C, 47^th Floor, Block 9m Phase 2, Tung Chung Crescent, No. 2 Mei Tung Street, Tung Chung, Lantau Island, New Territories
4
Name:	Fu Miao Chin
Address:	Flat C, 47^th Floor, Block 9m Phase 2, Tung Chung Crescent, No. 2 Mei Tung Street, Tung Chung, Lantau Island, New Territories
5
Name:	Lam Yin
Address:	Flat A, 15^th Floor, Block 5, Castello, 69 Sin Yuen Road, Shatin, New Territories

Name:	Lam Lee
Address:	Flat C, 13^th Floor, Block 5, Nan Fung Plaza, Tseung Kwan O, Kowloon

Management Information

Core Management

Detailed Information of Directors:

1
Name:	Chang Hwie Chen
Address:	Flat 10, 11^th Floor, Block J, Kormhill, Quarry Bay, Hong Kong
Position:	Director
ID Number:	E907364(0)
2
Name:	Fu Miao Chin
Address:	Flat C, 47^th Floor, Block 9m Phase 2, Tung Chung Crescent, No. 2 Mei Tung Street, Tung Chung, Lantau Island, New Territories
Position:	Director
ID Number:	E730285(5)
3
Name:	Hartono Hermawan
Address:	Kopo Plaza Blok D-19, Ji, Peta-Lingkar Selatan, Bandung 40233, Indonesia
Position:	Director
4
Name:	Liem Heng Bing
Address:	Flat 10, 11^th Floor, Block J, Kormhill, Quarry Bay, Hong Kong
Position:	Director
ID Number:	E907363(2)
5
Name:	Lim Hoi Wan
Address:	Flat C, 47^th Floor, Block 9m Phase 2, Tung Chung Crescent, No. 2 Mei Tung Street, Tung Chung, Lantau Island, New Territories
Position:	Director
ID Number:	K343460(5)
6
Name:	Lim Hoi Wan
Address:	Unit D, E & H, 16/F, Blk B, Marvel Ind. Bldg, 17-25 Kwai Fung Crescent, Kwai Chung, New Territories, Hong Kong
Position:	Corporate Secretary
Registered Number:	K343460(5)

Operation Information

Offices & Factories

	Office
Address:	Unit D, E & H, 16/F, Blk B, Marvel Ind. Bldg, 17-25 Kwai Fung Crescent, Kwai Chung, New Territories, Hong Kong

Premises Information

Office address:

Address:	Factory Unit D On 16/F Of Block B Marvel Industrial Building Nos.17-23 Kwai Fung Crescent Kwai Chung New Territories
Owners:	Southfirm Limited
Memorial Number:	TW631037
Date of Instrument:	1990-1-18
Date of Registration:	1990-2-6
Consideration Value:	HKD 980,490.00 (PT.)

History of Premises Owners’

1
Memorial No.:	TW865122
Date of Instrument:	1992-8-15
Date of Registration:	1992-11-13
Nature:	Legal Charge
In Favor of:	Sin Hua Bank Limited
Consideration:
2
Memorial No.:	TW631035
Date of Instrument:	1989-11-8
Date of Registration:	1990-2-6
Nature:	Agreement For Sale & Purchase
In Favor of:	Southrirm Limited
Consideration:	HKD 980,490.00 (PT.)
3
Memorial No.:	TW614216
Date of Instrument:	1989-11-8
Date of Registration:	1989-11-13
Nature:	Agreement For Sale & Puchase
In Favor of:	Southfirm Limited
Consideration:	HKD 980,490.00 (PT.)

Note: (PT.) means “part of”.

Production Information

· The subject is a trader of chemicals products and etc without any production activities.

It is introduced that subject’s related company has a factory in Guangdong province, the mainland of China for production.

It is introduced that the factory of subject’s related factory has obtained ISO 9001 certification.

Purchase Information

· It is introduced that subject purchases its products mainly from factory of its related company in the mainland of China.

Sales Information

· The subject is mainly engaged in sales of chemicals products and etc.

Subject’s major products include building construction material, gem like resin, Electronic Chemical and Battery, etc.

It is introduced that subject also provide some solutions for set-up of plants to various industries to its customers.

Subject’s selling territory is mainly in Asian countries and etc.

Subject’s major customers are construction industry, manufacturers of costume jewelry and etc.

It is introduced that subject is selling the brand under the name “Lycal”.

Trademark

1
Trade Mark No.:	200209391
Status:	Registered
Mark:	LYCAL 麗晶牌
Mark Type:	Ordinary
Owner's Name, Address:	SOUTHFIRM LIMITED FLAT D, E & H, 16/F., BLOCK B, MARVEL IND. BUILDING, 17-25 KWAI FUNG CRESCENT, KWAI CHUNG, NEW TERRITORIES, HONG KONG.
Class No.:	2
Specification:	Class 2 paints, varnishes, colorants.
Disclaimer / Limitation / Condition / Others：	Registration of this Trade Mark shall give no right to the exclusive use of the Chinese characters "麗" and "牌".
Date of Registration: (D-M-Y)	25-09-2001
Actual Date of Registration: (D-M-Y)	23-07-2002
Expiry date: (D-M-Y)	25-09-2018
Historical Details:
Date of entry	Matters
23-07-2002	REGISTRATION
2
Trade Mark No.:	19881364
Status:	Registered
Mark:	LYCAL 麗晶牌
Mark Type:	Ordinary
Owner's Name, Address:	SOUTHFIRM LIMITED FLAT D, E AND H, 16TH FLOOR, BLOCK B, MARVEL INDUSTRIAL BUILDING, 17-25 KWAI FUNG CRESCENT, KWAI CHUNG, NEW TERRITORIES, HONG KONG.
Owner's Address for Service:	SOUTHFIRM LIMITED FLAT D, E AND H, 16TH FLOOR, BLOCK B, MARVEL INDUSTRIAL BUILDING, 17-25 KWAI FUNG CRESCENT, KWAI CHUNG, NEW TERRITORIES, HONG KONG.
Class No.:	19
Specification:	Class 19 coatings (building materials).
Disclaimer / Limitation / Condition / Others：	The transliteration and translation of the Chinese characters appearing in the mark are "LAI CHING PAI" meaning "beautiful, crystal, brand". Registration of this Trade Mark shall give no right to the exclusive use of the Chinese characters "麗" and "牌".
Date of Registration: (D-M-Y)	17-07-1985
Actual Date of Registration: (D-M-Y)	06-05-1988
Expiry date: (D-M-Y)	17-07-2016
Historical Details:
Date of entry	Matters
02-04-1993	ASSIGNMENT
06-05-1988	REGISTRATION
3
Trade Mark No.:	19881363
Status:	Registered
Mark:	LYCAL 麗晶牌
Mark Type:	Ordinary
Owner's Name, Address:	SOUTHFIRM LIMITED FLAT D, E AND H, 126TH FLOOR, BLOCK B, MARVEL INDUSTRIAL BUILDING, 17-25 KWAI FUNG CRESCENT, KWAI CHUNG, NEW TERRITORIES, HONG KONG.
Owner's Address for Service:	SOUTHFIRM LIMITED FLAT D, E AND H, 126TH FLOOR, BLOCK B, MARVEL INDUSTRIAL BUILDING, 17-25 KWAI FUNG CRESCENT, KWAI CHUNG, NEW TERRITORIES, HONG KONG.
Class No.:	1
Specification:	Class 1 adhesive substances for use in industry.
Disclaimer / Limitation / Condition / Others：	The transliteration and translation of the Chinese characters appearing in the mark are "LAI CHING PAI" meaning "beautiful, crystal, brand". Registration of this Trade Mark shall give no right to the exclusive use of the Chinese characters "麗" and "牌".
Date of Registration: (D-M-Y)	17-07-1985
Actual Date of Registration: (D-M-Y)	06-05-1988
Expiry date: (D-M-Y)	17-07-2016
Historical Details:
Date of entry	Matters
02-04-1993	ASSIGNMENT
06-05-1988	REGISTRATION

Settlements

Purchase

Domestic Purchase

Products	Chemical products and etc
Payment Terms	Cash, T/T and etc

Import

Products	Chemical products and etc
Payment Terms	L/C, T/T and etc

Sales

Domestic Markets

Product	Chemical products and etc
Selling Terms	Cash, T/T and etc

Export

Product	Chemical products and etc
Selling Terms	L/C, T/T and etc

Financial Information

The subject has no obligation to supply its financial statement to the third party according to the relevant policy in Hong Kong and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff rejected to disclose the financial information, from other sources we could not obtain such information, either.

Bankers

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

Public Records

Civil Litigation

1
Date:	2006-02-27
Court Name:	Small Claim Tribunal
Court No.:	069598
Claimant:	Southfirm Ltd t/a Loyal Enterprise Co.
Defendant:	Green Rank Ltd
Reason:	Good Sold & Delivered
2
Date:	2006-02-06
Court Name:	Small Claim Tribunal
Court No.:	069597
Claimant:	Southfirm Ltd. t/a Loyal Enterprise Co.
Defendant:	Top Famous Construction Engineering Ltd
Reason:	Good Sold & Delivered
3
Date:	2005-12-19
Court Name:	Small Claim Tribunal
Court No.:	069597
Claimant:	Southfirm Ltd. t/a Loyal Enterprise Co.
Defendant:	Top Famous Construction Engineering Ltd
Reason:	Good Sold & Delivered
4
Date:	2005-12-19
Court Name:	Small Claim Tribunal
Court No.:	069598
Claimant:	Southfirm Ltd. t/a Loyal Enterprise Co.
Defendant:	Green Rank Ltd
Reason:	Good Sold & Delivered

Mortgage Record

1
Company Name:	Southfirm Limited
Instrument of Creating Mortgage:	Assignment of DC proceeds
Date of Creating Mortgage:	2004-10-25
Amount Secured:	All loans or other advances made or to be made by the bank to the customer against documents submitted under a documentary credit, all monies and whether separately or jointly, actually or contingently, present or future, bank in perfecting or enforcing the assignment.
Name and Address of Mortgagee:	The Hong Kong And Shanghai Banking Corporation Limited whose head office is situated at No. 1, Queen’s Road Central Hong Kong
Description of Property Mortgaged:	By way of assignment or agreement to assign in each cases as beneficial owner. All monies in any currency representing proceeds payable or to be paid to the customer under the customer’s right, title and interest in the said documentary credits and the benefit of all powers and remedies for enforcing the documentary credits (together the “assigned proceeds”) The customer undertakes to the bank pursuant to the assignment in respect of the assigned proceeds that: The assigned proceeds are and shall be in the sole beneficial ownership of the customer free from encumbrances and claims, (except under the assignment); To pay to the bank or procure that the bank is directly paid all assigned proceeds and that, unless otherwise agreed by the bank, any assigned proceeds received by the customer shall be held in trust for the bank and paid over to the bank forthwith upon receipt; Not to assign, charge, encumber, transfer or otherwise dispose of any assigned proceeds or any rights under the documentary credits except as directed by or with the consent of the bank in writing.
2
Company Name:	Southfirm Limited (“the borrower”)
Instrument of Creating Mortgage:	Mortgage
Date of Creating Mortgage:	2004-9-14
Amount Secured:	To secure all sums from time to time advanced by The Hong Kong And Shanghai Banking Corporation Limited (“the lender”) to the borrower whether alone or jointly with any person and outstanding in respect of general banking facilities and all interest thereon and all other moneys and obligations in respect of moneys which the borrower covenants to pay to the lender under mortgage.
Name and Address of Mortgagee:	The Hong Kong And Shanghai Banking Corporation Limited whose head office is situated at No. 1, Queen’s Road Central Hong Kong (“the lender”)
Description of Property Mortgaged:	All those 33 equal undivided 6,611th parts or shares of and in Kwai Chung Town Lot No. 337 (Factory Unit H on the 16^th Floor and Roof H of Block B of Marvel Industrial Building, No. 17-23 Kwai Fung Crescent, Kwai Chung, New Territories, Hong Kong)

Special Note

Interview Details

Department:	Sales Department
E-mail:	sales@loyalenterprise.com

Industry Information

59899--Other chemical products and preparations.

Unit: HKD/000

	2014.05		2014.01~2014.05
	Quantity	Value	Quantity	Value
Imports
United Arab Emirates	--	1,916	--	11,913
Australia	--	489	--	1,228
Belgium	--	318	--	5,302
Canada	--	701	--	2,538
USA	--	22,056	--	159,593
Switzerland	--	7,835	--	36,401
France	--	6,712	--	20,943
Britain	--	1,444	--	9,712
Japan	--	80,307	--	547,066
Korea	--	20,754	--	133,251
The Mainland of China	--	59,100	--	348,805
Exports
Indonesia	--	130	--	130
India	--	257	--	610
Korea	--	647	--	3,464
Macau	--	8	--	253
Singapore	--	16	--	96
Thailand	--	291	--	882
Taiwan	--	108	--	1,508
The Mainland of China	--	7,717	--	41,261

External Trade Information:

External Merchandise Trade Aggregate Figures

Unit: HKD/ Million

	Imports	Domestic Exports	Re-exports	Total exports	Year-on-year % change of Total exports	Merchandise trade balance
2011	3,764,596	65,662	3,271,592	3,337,253	+10.1	-427,343
2012	3,912,163	58,830	3,375,516	3,434,346	+2.9	-477,817
2013	4,060,717	54,364	3,505,322	3,559,686	+3.6	-501,031
2013.03	340,857	5,073	286,638	291,711	+11.2	-49,146
2013.04	332,963	4,503	285,763	290,267	+9.0	-42,696
2013.05	335,809	4,818	286,724	291,542	-1.0	-44,267
2013.06	327,309	4,476	273,161	277,637	-0.2	-49,673
2013.07	342,565	4,783	300,630	305,413	+10.6	-37,152
2013.08	347,059	4,932	302,558	307,490	-1.3	-39,570
2013.09	359,841	4,395	313,436	317,830	+1.5	-42,010
2013.10	361,196	4,458	318,686	323,144	+8.8	-38,052
2013.11	370,104	4,587	320,935	325,522	+5.8	-44,581
2013.12	365,228	4,596	306,281	310,877	0.0	-54,351
2014.01	323,436	4,299	299,157	303,456	-0.4	-19,979
2014.02	266,587	3,276	209,638	212,914	-1.3	-53,673
2014.03	351,889	5,120	296,403	301,523	+3.4	-50,365
2014.04	340,972	4,867	280,816	285,682	-1.6	-55,290
2014.05	348,323	5,299	300,673	305,973	+4.9	-42,350
2014.06	352,316	4,802	304,409	309,211	+11.4	-43,105

*Total exports figures have been rounded to the nearest final digit after summing up the constituent trade figures.

Attachment

Unit D, E & H, 16/F, Blk B, Marvel Ind. Bldg, 17-25 Kwai Fung Crescent, Kwai Chung, New Territories, Hong Kong

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.87
UK Pound	1	Rs.96.83
Euro	1	Rs.76.57

INFORMATION DETAILS

Analysis Done by :	DIV

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.