MIRA INFORM REPORT

Report Date :

17.07.2014

IDENTIFICATION DETAILS

Name :	HUA KE SUPPLY CHAIN (HK) LTD.
Registered Office :	Unit 601, 6/F., Grandtech Centre, 8 On Ping Street, Siu Lek Yuen, Shatin, New Territories
Country :	Hong Kong
Date of Incorporation :	26.01.2011
Com. Reg. No.:	53687912
Legal Form :	Private Limited Company
Line of Business :	Engaged in Trading of Numerical Products, Telecommunication Products, Mobile Phones, Computers, Computer Peripherals, IT Products, Instruments & Metres, Electronic Products, Instruments and Metres, Security Products, Broadcasting Equipment, Electric Household Appliances, Automobile Electronic Products & Industrial Raw Materials
No of Employees :	6

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Hong Kong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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

HUA KE SUPPLY CHAIN (HK) LTD.

Company ADDRESS

Unit 601, 6/F., Grandtech Centre, 8 On Ping Street, Siu Lek Yuen, Shatin, New Territories, Hong Kong.

PHONE: 852-2148 9668, 3586 9615

FAX: 852-3586 9616, 3105 9668, 3105 9776

MANAGEMENT

Managing Director: Mr. Chen Shaoqing

SUMMARY

Incorporated on: 26th January, 2011.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$1,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 6.

Main Dealing Banker: China Construction Bank Corporation, Hong Kong Branch

Banking Relation: Satisfactory

company ADDRESS

Registered Head Office:-

Unit 601, 6/F., Grandtech Centre, 8 On Ping Street, Siu Lek Yuen, Shatin, New Territories, Hong Kong.

Holding Company:-

Shenzhen Xinlikang Supply Chain Management Co. Ltd.

Unit A, 36/F., Tower A, NEO Building, 6011 Shennan Road, Futian District, Shenzhen, China.

[Tel: 0755-8253 8333, Fax: 0755-8253 8222]

Associated Companies:-

Hua Ke Electronic (H.K.) Co. Ltd., Hong Kong. (Same address)

Hua Ke Logistics (HK) Ltd., Hong Kong.

Hua Xin Supply Chain (HK) Ltd., Hong Kong.

Shanghai Xinlikang Supply Chain Management Co. Ltd., China.

Shenzhen Sincnet Technology Co. Ltd., China.

Shenzhen Xinlikang Enterprise Co. Ltd., China.

Shenzhen Xinlikang Logistics Co. Ltd., China.

Xinlikang Supply Chain Guanlan Breeding Base, China.

BUSINESS REGISTRATION NUMBER

53687912

COMPANY FILE NUMBER

1556182

MANAGEMENT

Managing Director: Mr. Chen Shaoqing

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

SHAREHOLDER

(As per registry dated 26-01-2014)

Name	No. of shares
Shenzhen Xinlikang Supply Chain Management Co. Ltd. Unit A, 36/F., Tower A, NEO Building, 6011 Shennan Road, Futian District, Shenzhen, China.	1,000,000 =======

DIRECTORS

(As per registry dated 26-01-2014)

Name (Nationality)	Address
PENG Shaoduan	Room 603, Block 4, Jinzhou Garden, Futian District, Shenzhen Special Economic Zone, China.
PENG Huanlin	Room 2202, Block 9, Golden Garden, Futian District, Shenzhen Special Economic Zone, China.
CHEN Shaoqing	17 Zhenmei Trading Centre, Guiyu, Chiaoyang District, Shantou Special Economic Zone, China.

SECRETARY

(As per registry dated 26-01-2014)

Name	Address
LI Nga Mei	Room 705, 7/F., Sheung Yee House, Sheung Tak Estate, Tseung Kwan O, New Territories, Hong Kong.

HISTORY

The subject was incorporated on 26th January, 2011 as a private limited liability company under the Hong Kong Companies Ordinance.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: Numerical products, telecommunication products, mobile phones, computers,

peripherals, IT products, instruments & metres, electronic products

Employees: 6.’

Commodities Imported: China, other Asian countries, etc.

Markets: Japan, India, other Asian countries, Europe, the Middle East, etc.

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

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

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

Mortgage or Charge: (See attachment)

Profit or Loss: Made a small profit in 2013.

Condition: Business is improving.

Facilities: Making fairly active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory

Bankers:-

China Construction Bank Corporation, Hong Kong Branch.

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

Standing: Normal.

GENERAL

Having issued 1 million ordinary shares of HK$1.00 each, Hua Ke Supply Chain (HK) Ltd. is a wholly owned subsidiary of Shenzhen Xinlikang Supply Chain Management Co. Ltd. [Xinlikang], a China-based firm.

The subject has had an associated company located at the same address known as Hua Ke Electronic (H.K.) Co., Ltd., also a Hong Kong registered firm.

The subject is trading in and supplying the following commodities:-

Numerical Products, Telecommunication Products, Mobile Phones, Computers, Computer Peripherals, IT Products, Instruments & Metres, Electronic Products, Instruments And Metres, Security Products, Broadcasting Equipment, Electric Household Appliances, Automobile Electronic Products & Industrial Raw Materials

Xinlikang was established in November 2003 as a limited liability company. With a registered capital of RMB55 million Yuan, it is jointly owned by three China natural persons, namely, Peng Shaoduan, holding 21.82% interests, Chen Shaoqing, holding 74.54% interests and Peng Huanlin, holding 3.64%.

The subject is one of the national leaders in the field of supply chain management.

Now, Xinlikang has nine subsidiaries and its total assets amounted to RMB6 billion Yuan.

Xinlikang provides its clients with “one-stop supply chain services” including global procurement, distribution, VMI inventory management, virtual production, customs clearance, transportation management, warehousing, payments settling, information management, etc.

Customers are domestic enterprises involved in consumer electronics, communication equipment, instruments & meters and auto electronics.

Xinlikang has set up a delivery centre at Zhongyuntai Sci-Tech Industrial Park, Tangtou Industrial Zone, Shiyan, Bao’an District, Shenzhen Special Economic Zone and branch offices in Shanghai, Beijing, Hong Kong, etc.

Xinlikang imports various kinds of electronics and electronic components from Hong Kong, Japan, Europe, the United States, etc. for its customers.

In the field of logistics, Xinlikang has signed long-term cooperative ties with large‑sized airlines such as Air China, Hainan Airlines, China Southern Airlines, Shenzhen Airlines, etc.

In 2011, Xinlikang’s operating income amounted to RMB211.0 million Yuan, total profit was RMB11.2 million Yuan. Profit margin was good in the year. In 2012, its operating income amounted to RMB775.5 million Yuan, total profit was RMB47.4 million Yuan. The business of Xinlikang keeps on improving.

Xinlikang has about 230 employees in Shenzhen Special Economic Zone, China.

Mr. Chen Shaoqing has been conferred the title of on of the “Shenzhen 10 Outstanding Young Entrepreneurs”.

The subject is fully supported by Xinlikang. History is just over three years.

On the whole, consider the subject good for normal business engagements in small credit amounts.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.19
UK Pound	1	Rs.103.14
Euro	1	Rs.81.66

INFORMATION DETAILS

Report Prepared by :

MNL

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.