MIRA INFORM REPORT

Report No. :	319007
Report Date :	28.04.2015

IDENTIFICATION DETAILS

Name :	SIU KEE (HONG KONG) TANNERY LTD.
Registered Office :	G/F. & M/F., Tsun Mee Industrial Building, 8 Wang Yip Street East, Yuen Long, New Territories
Country :	Hong Kong
Date of Incorporation :	19.06.1981
Com. Reg. No.:	07282489
Legal Form :	Private Limited Company
Line of Business :	Importer and Exporter of Leathers for shoe uppers, handbags, wallets, suitcase and garments
No. of Employee :	20. (Including associates)

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

Source : CIA

Company name and address

SIU KEE (HONG KONG) TANNERY LTD.

ADDRESS: G/F. & M/F., Tsun Mee Industrial Building, 8 Wang Yip Street East, Yuen Long, New Territories, Hong Kong.

PHONE: 852-2477 3038, 2477 1866

FAX: 852-2478 3128

E-MAIL: elsa@siukee.com

info@siukee.com

MANAGEMENT

Managing Director: Mr. Wong Yui Chuen

SUMMARY

Incorporated on: 19th June, 1981.

Organization: Private Limited Company.

Issued Share Capital: HK$900,000.00

Business Category: Leather Trader.

Employees: 20. (Including associates)

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

G/F. & M/F., Tsun Mee Industrial Building, 8 Wang Yip Street East, Yuen Long, New Territories, Hong Kong.

China Factory:-

Guangzhou Zhaoxiong Tannery Co. Ltd.

Liangtian Village, Zhuliao Town, Baiyuan District, Guangzhou, Guangdong Province, China.

Associated Companies:-

Grand Land Trading Ltd., Hong Kong. [Dissolved]

Kingwell (China) Ltd., Hong Kong.

Siu May Tannery (China) Ltd., Hong Kong. [Dissolved]

Tsun Mee Investment (HK) Ltd., Hong Kong.

BUSINESS REGISTRATION NUMBER

07282489

COMPANY FILE NUMBER

0099475

MANAGEMENT

Managing Director: Mr. Wong Yui Chuen

Contact Person: Ms. Elsa Wong

ISSUED SHARE CAPITAL

HK$900,000.00

SHAREHOLDERS

(As per registry dated 19-06-2014)

Name		No. of shares
WONG Kwan Chuen		450,000
WONG Yui Chuen		450,000
		–––––––
	Total:	900,000 ======

DIRECTORS

(As per registry dated 19-06-2014)

Name (Nationality)	Address
WONG Yui Chuen	Room B, 34/F., Block 2, Maywood Court, Kingswood Villas, 9 Tin Lung Road, Tin Shui Wai, New Territories, Hong Kong.
WONG Kwan Chuen	Room B, 34/F., Block 2, Maywood Court, Kingswood Villas, 9 Tin Lung Road, Tin Shui Wai, New Territories, Hong Kong.

SECRETARY

(As per registry dated 19-06-2014)

Name	Address
WONG Kit Yuen	Room B, 34/F., Block 2, Maywood Court, Kingswood Villas, 9 Tin Lung Road, Tin Shui Wai, New Territories, Hong Kong.

HISTORY

The subject was incorporated on 19th June, 1981 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: Leather Trader. Importer and Exporter.

Lines: Leathers for shoe uppers, handbags, wallets, suitcase and garments.

Trade Mark: “SIU KEE” brand.

Office/Factory Space: 5,500 sq.m. in Hong Kong.

Employees: 20. (Including associates)

130. (China)

Raw Materials: Mainly imported from India, Europe, South America, etc.

Markets: Hong Kong, China

Terms/Sales: As per contracted.

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

MEMBERSHIP

Hong Kong Hide & Leather Traders’ Association Ltd., Hong Kong.

FINANCIAL INFORMATION:

Issued Share Capital: HK$900,000.00

Mortgage or Charge (since 1998): (See attachment)

Profit or Loss: Making a very small profit every year.

Condition: Keeping in a normal state.

Facilities: Making active use of general banking facilities.

Payment: Regularly met.

Commercial Morality: Good.

Bankers:-

Bank of China (Hong Kong) Ltd., Hong Kong.

Hang Seng Bank Ltd., Hong Kong.

The Bank of East Asia Ltd., Hong Kong.

Standing: Normal.

GENERAL

Having issued 900,000 ordinary shares of HK$1.00 each, Siu Kee (Hong Kong) Tannery Ltd. is equally owned by Mr. Wong Kwan Chuen and Mr. Wong Yui Chuen. Being Hong Kong merchants, they are also directors of the subject.

The subject has had an associated factory in Baiyuan District, Guangzhou, Guangdong Province, China known as Guangzhou Zhaoxiong Tannery Co. Ltd. [Zhaoxiong]. This factory covers an area of 13,000 sq.m. It is a Sino-Hong Kong co-operative venture.

Zhaoxiong in China is engaged in processing of raw leathers. It is specialized in producing leather materials for handbags, wallets, shoes, watch strips and garments.

The subject is trading in leather raw materials. It is trading in the following materials:-

• Sheep – W/B, crust, finish garment nappa, full grain nappa, nubuck leather, embossed leather;
• Cow – Split leather, soft nappa, finish leather for handbags and shoes; &
• Pig – nappa and suede for garment and hand bags.

Raw materials are chiefly imported from India, Italy, Spain, other European countries, South America

In Hong Kong, the subject has had an associated company Tsun Mee Investment (HK) Ltd., a Hong Kong-registered company located at the same address. This company is also jointly owned by Mr. Wong Kwan Chuen and Mr. Wong Yui Chuen.

The history of the subject in Hong Kong is over 33 years and ten months.

On the whole, consider the subject good for normal credit requirements.

MORTGAGE OR CHARGE

(Since 1998)

Date	Description of Instrument	Mortgagee
06-02-1998	Equitable Mortgage	Hang Seng Bank Ltd., Hong Kong.
07-01-2015	Legal Charge/Mortgage	The Bank of East Asia Ltd., Hong Kong.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.61
UK Pound	1	Rs.96.56
Euro	1	Rs.69.18

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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.