MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	WYNVAYE INDUSTRIAL CO. LTD.
Registered Office :	1/F., Southeast Industrial Building, 611-619 Castle Peak Road, Tsuen Wan, New Territories
Country :	Hongkong
Date of Incorporation :	08.08.1986
Com. Reg. No.:	10478584
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of all kinds of fabrics, canvas.
No. of Employees :	20

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Hongkong	A1	A1

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 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

WYNVAYE INDUSTRIAL CO. LTD.

ADDRESS: 1/F., Southeast Industrial Building, 611-619 Castle Peak Road, Tsuen Wan, New Territories, Hong Kong.

PHONE: 852-2368 6321

FAX: 852-2310 9835

E-MAIL: connie@wynvaye.com

MANAGEMENT

Managing Director: Mr. Lee Yuk Ming, Nelson

SUMMARY

Incorporated on: 8th August, 1986.

Organization: Private Limited Company.

Issued Share Capital: HK$1,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 20.

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

Banking Relation: Satisfactory

ADDRESS

Registered Head Office:-

1/F., Southeast Industrial Building, 611-619 Castle Peak Road, Tsuen Wan, New Territories, Hong Kong.

Associated Companies:-

Changzhou Giantsun Textile Co. Ltd., China.

Changzhou Wynson Greige Weaving Co. Ltd., China.

Guangzhou Fungtex Weaving & Dyeing Factory Ltd., China.

Guangzhou Yongnan Textile Co. Ltd., China.

Kentex Denim Weaving Co. Ltd., China.

Wynson Investment & Industrial Co. Ltd., Hong Kong. (Same address)

Wynvaye Group Ltd., Hong Kong. (Same address)

etc.

BUSINESS REGISTRATION NUMBER

10478584

COMPANY FILE NUMBER

0173165

MANAGEMENT

Managing Director: Mr. Lee Yuk Ming, Nelson

Contact Person: Ms. Connie Wu

ISSUED SHARE CAPITAL

HK$1,000,000.00

SHAREHOLDERS

(As per registry dated 08-08-2014)

Name		No. of shares
LEE Yuk Ming		999,990
LEE Yee Man		10
		––––––––
	Total:	1,000,000 =======

IRECTORS

(As per registry dated 08-08-2014)

Name (Nationality)	Address
SHUM Kwok Shing	2/F., Block 10, Prince Garden, 128 Tai Hang Village, Taipo, New Territories, Hong Kong.
LEE Yee Man	Flat A, 27/F., Tower 7, The Leighton Hill, 2B Broadwood Road, Happy Valley, Hong Kong.
LEE Yuk Ming	Flat A, 27/F., Tower 7, The Leighton Hill, 2B Broadwood Road, Happy Valley, Hong Kong.

SECRETARY

(As per registry dated 08-08-2014)

Name	Address	Co. No.
Beas Ltd.	20/F., Euro Trade Centre, 21-23 Des Voeux Road Central, Hong Kong.	0065366

HISTORY

The subject was incorporated on 8th August, 1986 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at 23/F., CRE Centre, 889 Cheung Sha Wan Road, Cheung Sha Wan, Kowloon, Hong Kong, moved to the present address in July 2008.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of fabrics, canvas, etc.

Employees: 20.

Commodities Imported: China, Taiwan, South Korea, other Asian countries, etc.

Markets: North America, Southeast Asia, Western Europe, etc.

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

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

FINANCIAL INFORMATION

Issued Share Capital: HK$1,000,000.00

Indebtedness: HK$23,173,469.00 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 08-08-2014)

Mortgage or Charge (since 2010): (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.

Bankers:-

Hang Seng Bank Ltd., Hong Kong.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

GENERAL

Having issued 1 million ordinary shares of HK$1.00 each, Wynvaye Industrial Co. Ltd. is almost wholly owned by Mr. Lee Yuk Ming, while the other shareholder Ms. Lee Yee Man is holding an insignificant equity. The two shareholders and Mr Shum Kwok Shing are directors of the subject. All are Hong Kong merchants.

The subject is trading in the following commodities: Canvas – Cotton; Woven (OEM); Sheeting – Cotton; Woven (FLANNELETTE, OEM); Twill – Cotton; Woven (OEM); Poplin – Cotton; Woven (OEM); Denim – Cotton; Woven (OEM); Shirting – Cotton; Woven (OEM); Corduroy – Cotton; Woven (OEM); Chambray – Cotton; Woven (OEM); Fabric - Linen & Ramie (COTTON LINEN, OEM), etc.

Commodities are sourced from China, Taiwan, South Korea, other Asian countries, etc. Prime markets are North America, Southeast Asia, Western Europe, etc.

In order to cope with business needs, the subject has diversified its production facilities in Mainland China. It currently has a number of joint ventures companies as follows:-

· Changzhou Wynson Greige Weaving Co. Ltd.

Changzhou Giantsun Textile Co. Ltd. [Giantsun]

Kentex Denim Weaving Co. Ltd.

Guangzhou Fungtex Weaving & Dyeing Factory Ltd. [Fungtex]

Wynson Greige Weaving Company Limited located in Changzhou is specialized in greige weaving with a total capacity of four million yards per month.

Giantsun located in Changzhou is specialized in yarn dyeing and weaving with a total capacity of one million and five hundred thousand yards per month.

Kentex Denim Weaving Co. Ltd. located in Changzhou is specialized in denim weaving with a total capacity of one million yards per month.

Fungtex located in Guangzhou is specialized in yarn dyeing and weaving with a total capacity of six hundred thousand yards per month.

As the history of the subject is over 28 years and four months in Hong Kong, on the whole, consider it good for normal business engagements.

MORTGAGE OR CHARGE

(Since 2010)

Date	Description of Instrument	Mortgagee
22-06-2010	Assignment of Insurance Policy	Hang Seng Bank Ltd., Hong Kong.
29-10-2010	Equitable Mortgage	Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
16-05-2011	Legal Charge/Mortgage	Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
16-05-2011	Rental Assignment	Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
15-09-2014	Charge Over Deposits/Securities	Hang Seng Bank Ltd., Hong Kong.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.21
UK Pound	1	Rs.97.80
Euro	1	Rs.77.48

INFORMATION DETAILS

Analysis Done by :	SUB
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%)

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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.