MIRA INFORM REPORT

Report Date :

02.09..2014

IDENTIFICATION DETAILS

Name :	NEIL PRYDE LTD.
Registered Office :	20/F., YKK Building, Phase 2, 2 San Lik Street, Tuen Mun, New Territories
Country :	Hong Kong
Date of Incorporation :	22.09.1970
Com. Reg. No.:	03077640
Legal Form :	Private Limited Company
Line of Business :	Manufacturer of Windsurfing Sails and Equipment
No of Employees :	50

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 :	Slow But Correct
Litigation :	--

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	A1	A1

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 & ADDRESS

NEIL PRYDE LTD.

ADDRESS

20/F., YKK Building, Phase 2, 2 San Lik Street, Tuen Mun, New Territories, Hong Kong.

PHONE: 852-2456 6566, 2456 6527

FAX: 852-2456 3471

E-MAIL: marketing@neilpryde.com

nphq@neilpryde.com

MANAGEMENT

Managing Director: Mr. Patrick Pender

SUMMARY

Incorporated on: 22nd September, 1970.

Organization: Private Limited Company.

Capital: Nominal: HK$57,500,000.00

Issued: HK$42,500,000.00

Business Category: Windsurfing Sails and Equipment Manufacturers.

Annual Turnover: HK$600-650 million.

Employees:-

Office Staff: 50. (Hong Kong)

Workers: 2,000. (China)

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

20/F., YKK Building, Phase 2, 2 San Lik Street, Tuen Mun, New Territories, Hong Kong.

Mailing Address:-

G.P.O. Box 89379, Kowloon City, Kowloon, Hong Kong.

Business Name:-

NEILPRYDE, as@pdirect

Division:-

Neil Pryde Performance Manufacturing, Hong Kong.

Factories:-

Bao’an District, Shenzhen Special Economic Zone, China.

Shajiang, Shenzhen, Shenzhen Special Economic Zone, China.

Chang Mai, Thailand.

Holding Company:-

Shriro Pacific Ltd., Hong Kong.

Subsidiary/Associated Companies:-

* Flow International Ltd., Hong Kong.

* Laminated Products Ltd., Hong Kong.

Neil Pryde Europe S.A., France.

(* Dissolved)

Related Companies:-

Shriro Group of Companies

Gelec (H.K.) Ltd., Hong Kong.

Gelec (Macau) Ltda., Macau.

Gelec (UK) Ltd., U.K.

KG Intelligent Systems Ltd., Hong Kong.

Monaco Corporation Ltd., New Zealand.

Shanghai Peninsula Engineering & Equipment Co. Ltd., China.

Shriro (H.K.) Ltd., Hong Kong.

Shriro (Malaysia) Sdn. Bhd., Malaysia.

Shriro (Singapore) Pte. Ltd., Singapore.

Shriro Australia Pty. Ltd., Australia.

Shriro Equipment (Thailand) Ltd., Thailand.

Shriro Equipment Ltd., Hong Kong.

Shriro Graphic Ltd., Hong Kong.

Shriro Heavy Equipment Ltd., Hong Kong.

Shriro International Ltd., Canada.

Shriro Machinery Ltd., Hong Kong.

Shriro Medical Ltd., Thailand.

Shriro Pacific Paper (Singapore) Pte. Ltd., Singapore.

Shriro Paper (Malaysia) Sdn. Bhd., Malaysia.

Shriro Paper (Singapore) Pte. Ltd., Singapore.

Shriro Shanghai Co. Ltd., China.

Shriro Sports (HK) Ltd., Hong Kong.

Shriro Trading Co. Ltd., Hong Kong/Japan Branch.

Shriro Webb Ltd., Hong Kong/Taiwan Branch.

V. Lee (HK) Co. Ltd., Hong Kong.

Victor Hasselblad AB, Sweden.

etc.

BUSINESS REGISTRATION NUMBER

03077640

COMPANY FILE NUMBER

0021513

MANAGEMENT

Chairman: Mr. Neil Frederick Pryde

Managing Director: Mr. Patrick Pender

Group Chief Finance Officer: Mr. Fung King Cheung, Vasco

Chief Operating Officer: Mr. Peter Liu

CAPITAL

Nominal Share Capital: HK$57,500,000.00 (Divided into 100,000,000 Ordinary shares and 15,000,000 Non-voting deferred shares of HK$0.50.00 each)

Issued Share Capital: HK$42,500,000.00

SHAREHOLDERS

(As per registry dated 22-09-2013)

Name		No. of shares
Shriro Pacific Ltd., Hong Kong.		63,745,143
Wilvestor Ltd., Hong Kong.		21,250,000
FUNG King Cheung, Vasco		4,857
		–––––––––
	Total:	85,000,000 ========

DIRECTORS

(As per registry dated 06-01-2014)

Name (Nationality)	Address
Patrick Matthew Blair PENDER	6/F., Block D, Willow Mansion, Taikoo Shing, Hong Kong.
LUI Yuen Lun, Peter	Flat D, 8/F., Kadoorie Hill, 211 Prince Edward Road West, Kowloon, Hong Kong.
POON Yiu Ming	Flat C, 48/F., Block T1, Grand Promenade, 38 Tai Hong Street, Sai Wan Ho, Hong Kong.
LAI Wai Yi, May	Flat H, 6/F., Ngan Sing Mansion, Taikoo Shing, Hong Kong.
Neil Frederick PRYDE	Room 10, Hong Lok Yuen, 7th Street, Tai Po, New Territories, Hong Kong.
Mark Stanley SHRIRO	16/F., Europa Residence, Place des Moulins, 98000, Monte Carlo, Monaco.
FUNG King Cheung, Vasco	Flat 2, 7/F., Block B, Villa Rocha, 10 Broadwood Road, Happy Valley, Hong Kong.

SECRETARY

(As per registry dated 22-09-2013)

Name	Address	Co. No.
WBC Secretaries Ltd.	Room 1902, 19/F., MassMutual Tower, 38 Gloucester Road, Wanchai, Hong Kong.	0018669

HISTORY

The subject was incorporated on 22nd September, 1970 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: Manufacturers and Exporters.

Lines: Neoprene wetsuits, paragliders, soft luggage bags/sport bags/bags from nylon/polyester oxfords, boardsails/yacht sails, windsurfing sails, windsurfing boards, plastic sails, sport parachutes, snow board boots & bindings, rigs, sporting accessories, etc.

Employees:-

Office Staff: 50. (Hong Kong)

Workers: 2,000. (China)

Raw Materials:-

Polyester and nylon sailcloth – Japan.

Stainless steel wire – US.

Rope – Japan.

Hardware – Hong Kong, Australia, Europe and US.

Markets: Europe, US, Canada, South America, Japan, Australia, etc.

Annual Turnover: HK$600-650 million.

Terms/Sales: L/C, D/P or D/A.

Terms/Buying: L/C (main) or D/A 60 days credit.

MAIN JAPANESE SUPPLIERS

Toray Industries Inc., Japan. [Through Izumi Co. Ltd., Japan.]

Teijin Ltd., Japan. [Through Marubeni Corporation, Japan.]

MEMBERSHIP:

The Hong Kong General Chamber of Commerce, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$57,500,000.00 (Divided into 100,000,000 Ordinary shares and 15,000,000 Non-voting deferred shares of HK$0.50.00 each)

Issued Share Capital: HK$42,500,000.00

Indebtedness: HK$144,905,000.00 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 22-09-2013)

Mortgage or Charge: (See attachment)

Profit & Loss: Business is profitable.

Condition: Business is active and satisfactory.

Facilities: Making active use of general banking facilities.

Payment: Delay payment experienced in the past.

Commercial Morality: Satisfactory.

Bankers

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

BNP Paribas, Hong Kong Branch.

Standing: Good.

GENERAL

Neil Pryde Ltd. [NEIL] was set up in Hong Kong in 1970 by Mr. Neil F. Pryde (a New Zealand-born Olympic yachtsman) and a Swedish friend. Each of them had held a 50% stake in the company. Mr. Pryde represented Hong Kong in both Olympic Games in 1968 and the 505 World championships. He is ex-director of Roller Tasker (Hong Kong) Ltd., the pioneer in producing yacht sail in Hong Kong. He is active in sport and keen on boat sailing. He is a member of Hong Kong Yacht Club and other clubs related to boat sailing.

In 1976, the Inchcape Group bought out all the shares owned by the Swedish businessman and made it the major shareholder by acquiring 1% from Mr. Pryde.

Now, the subject is jointly owned by two firms: Shriro Pacific Ltd. holding 75%, and Wilvestor Ltd., holding 25%. The minor shareholder is Mr. Fung King Cheung Vasco who is a Hong Kong merchant. Shriro Pacific Ltd. is a key member of the Shriro Group.

Now, the Shriro Group is the majority shareholder in Neil Pryde Ltd., a partnership with Mr. Neil Pryde in the past 25 years. With over 3,000 employees, distribution network in more than 40 countries, NEIL is one of world’s biggest players in the marine and adventure sports markets.

In early 90’s, NEIL changed its main dealing bank from Standard Chartered Bank to The Hongkong & Shanghai Banking Corp. Ltd. The Hongkong & Shanghai Banking Corp. Ltd. had paid back loans for NEIL to the former bank. A new bank Banque Nationale de Paris (now known as BNP Paribas), also has joined in to finance NEIL’s normal trade.

In 1991, NEIL started to build a new China factory in Bao’an and move the major part of production to China. Now, NEIL’s Hong Kong office only keeps its warehousing, marketing and purchasing departments. In February 1991, NEIL opened another HK$16 million manufacturing facility for boardsailing equipment in China.

Now, NEIL has had the following three factories:-

Location	Products	Size	No. of Staff	Monthly Output
Bao’an District, Shenzhen, Guangdong Province, China.	Sails, kites and wetsuits	17,000 sq.m.	900	HK$16 million
Shajiang, Shenzhen, Guangdong Province, China.	Bags and luggage	16,000 sq.m.	950	HK$12 million
Chang Mai, Thailand.	Wetsuits	55,000 sq.m.	300	HK$5 million

NEIL started making yachtsails in Hong Kong over 30 years ago. Today it is one of the world’s leading manufacturers of windsurfing rigs (sails, masts and booms), wetsuits, and a wide range of harnesses, bags and windsurfing accessories.

NEIL’s principal products fall under the following categories:-

Downloads;

NP Collection;

Waterwear;

Windsurfing; &

WS Equipment.

The Neil Pryde Group [Pryde Group] generates an increasing amount of revenue through OEM products. The Group’s expertise in wetsuit manufacturing has built the company into one of the world’s top three wetsuit manufacturers in less than a decade. In addition, the OEM luggage business has continued to grow, with both the wetsuit and luggage businesses supplying some of the world’s best-known brands with top quality product.

The Neil Pryde Group products are sold worldwide through a network of wholly owned distribution companies and strategic distribution partnerships. Initially devised as a distribution and logistics network for the company’s own products, the group now offers access to more than 3,500 retailers in the adventure and marine sports industry, making this an ideal launch platform for new products looking to quickly broaden their global reach.

With factories in China and Thailand, the Neil Pryde Group’s manufacturing business employs more than 2,000 workers and operates under the name of Performance Manufacturing. Developed initially to manufacture the company’s own products, Performance Manufacturing has emerged as a highly successful specialist manufacturer of high performance sports equipment for the sporting goods industry, supplying products to many leading sporting equipment and accessories brands.

The Pryde Group owns a portfolio of brands, each targeting a specific niche in the marine and adventure sports markets:

NeilPryde Windsurfing - the original Pryde Group brand; a maker of windsurfing sails and rigs.

NP Waterwear – aimed at all action sports enthusiasts, NP make a wide variety of wetsuits and waterwear.

Cabrinha - the high performance kite and kiteboard brand that rapidly became a leader in the fast growing kitesurfing market.

JP Australia - Named after Jason Polakow, the former Wavesailing World Champion and figurehead of the brand. JPA is a premium, high performance windsurfing board brand with a range of more than 30 boards.

NeilPryde Bikes - Introduced in 2010, this brand sees the company moving from the sea onto the road. NeilPryde Bikes is a high‑performance road bike brand initially carrying two models of bicycles designed in collaboration with BMW Group DesignworksUSA.

Imagine Surf – Founded in 2002 in California, Imagine is a standup paddle (SUP) brand designing products for riders at all skill levels.

NEIL is fully supported by its bankers.

NEIL is now a member of the Shriro Group which was founded in 1906 by the Shriro family in Harbin, China. The first international office was set up in 1917 in Yokahama, Japan. From early days in commodities – mainly leathers and furs – business expanded rapidly after 1945 as Shriro’s product lines grew and subsidiaries opened in many Southeast Asian countries, Australia and New Zealand.

The history of NEIL in Hong Kong is over 43 years.

On the whole, in view of NEIL’s history, background, and lines of business, consider it good for normal business engagements.

REMARKS

Court case:-

Action Date	Case No.	Plaintiff	Defendant	Cause	Amount
Oct. 1989	-	Wameco Ltd.	Neil Pryde Ltd.	Damages	Not stated
Aug. 1991	-	Standard Chartered Finance Ltd.	Neil Pryde Ltd.	Amount due	HK$ 193,602
20-07-1994	S16495	Fung’s Consultant Company	Neil Pryde Ltd.	Amount due	-
12-11-2002	D6958	A1 Synthetic Leather Company	Neil Pryde Ltd.	Damages	HK$321,651
12-05-2005	D655	Anja Kather	Neil Pryde Ltd. and others	Damages	-

MORTGAGE OR CHARGE

Date	Description of Instrument	Mortgagee
13-06-1991	Blocked Deposit Undertaking	BNP Paribas, Hong Kong Branch.
11-08-2001	Assignment of DC Proceeds re export bills restricted to other banks for negotiation/payment	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
27-10-2008	Assignment of DC and Export Proceeds	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.47
UK Pound	1	Rs.100.43
Euro	1	Rs.79.40

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	SHG

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.