MIRA INFORM REPORT

Report No. :	352914
Report Date :	09.12.2015

IDENTIFICATION DETAILS

Name :	HEFENG COMPUTERIZED EMBROIDERY MACHINES LTD.

Registered Office :	C/o Calvary Consultant Ltd. Room 1203, 12/F., Hip Kwan Commercial Building, 38 Pitt Street, Yau Ma Tei, Kowloon

Country :	Hong Kong

Date of Incorporation :	11.09.2013

Com. Reg. No.:	62027105

Legal Form :	Private Limited Liability Company

Line of Business :	Not Available

No. of Employees :	No Employee in Hong Kong NOTE: It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	No Operating Office in Hong Kong
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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

Source : CIA

Company Name

HEFENG COMPUTERIZED EMBROIDERY MACHINES LTD.

ADDRESS

Registered Office:-

C/o Calvary Consultant Ltd.

Room 1203, 12/F., Hip Kwan Commercial Building, 38 Pitt Street, Yau Ma Tei, Kowloon, Hong Kong.

Associated Companies:-

Jiangxi Hefeng Electronic Machinery Co. Ltd., China.

Shenzhen Pinxing Machines Ltd., China.

Shenzhen Yihefeng Intelligent Sewing Machinery Ltd., China.

BUSINESS REGISTRATION NUMBER

62027105

COMPANY FILE NUMBER

1965731

DATE OF INCORPORATION

11th September, 2013.

ISSUED SHARE CAPITAL

HK$10,000.00

SHAREHOLDER

(As per registry dated 11-09-2015)

Name

No. of shares

ZHANG Jian Chun

10,000

=====

DIRECTOR

(As per registry dated 11-09-2015)

Name

(Nationality)

Address

ZHANG Jian Chun

627 Hubin Court, Lihu Garden, Buji, Longgang District, Shenzhen Special Economic Zone, China.

SECRETARY

(As per registry dated 11-09-2015)

Name	Address	Co. No.
Calvary Consultant Ltd.	Room 1203, 12/F., Hip Kwan Commercial Building, 38 Pitt Street, Yau Ma Tei, Kowloon, Hong Kong.	0941606

GENERAL

Hefeng Computerized Embroidery Machines Ltd. was incorporated on 11th September, 2013 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject does not have its own operating office. Its registered office is in a commercial service firm located at ‘Room 1203, 12/F., Hip Kwan Commercial Building, 38 Pitt Street, Yau Ma Tei, Kowloon, Hong Kong’ known as ‘Calvary Consultant Ltd.’ [Calvary] which is handling its correspondences and documents. The consultant company is also the corporate secretary of the subject.

The subject has no employees in Hong Kong. Your given phone and fax number 852-5311 3260 and 852-2155 0336 respectively belong to Calvary.

According to the Companies Registry of Hong Kong, the subject has issued 10,000 ordinary shares of HK$1.00 each which are wholly-owned by Ms. Zhang Jian Chuan.

She is a China ID holder and does not have the right to reside in Hong Kong permanently. She is also the only director of the subject. Her registered address is in Longgang District, Shenzhen Special Economic Zone, China.

Ms. Zhang Jian Chuan is also manager of Shenzhen Pinxing Machines Ltd. Besides, the subject has got the following two associated companies in China:-

Jiangxi Hefeng Electronic Machinery Co. Ltd. [Jiangxi Hefeng]

Shenzhen Yihefeng Intelligent Sewing Machinery Ltd. [Yihefeng]

Jiangxi Hefeng is engaged in manufacturing computerized embroidery machines. Set up in 2004, Jiangxi Hefeng’s manufacturing base is in Shangrao County, Jiangxi Province while its operational centre is in Shenzhen Special Economic Zone, China. Its annual output can be more than 1,000 sets. Its factory covers an area of 33,000 sq.m. It has got ISO 9001 certification.

Jiangxi Hefeng manufactures the following products:-

· Single Head Embroidery Machine;

· Cap/T-shirt Embroidery Machine;

· Hi-Speed Flat Embroidery Machine;

· Lace Embroidery Machine;

· Chenille Embroidery Machine;

· Coiling Embroidery Machine;

· Mixed Embroidery Machine; &

· Double-Row Embroidery Machine.

According to Jiangxi Hefeng, it has successfully developed the world’s 1st 86 heads computerized embroidery machine and double row computerized embroidery machine.

All its products bear the brand name He Feng. Products are marketed in China, exported to Southeast Asia, Japan, Europe, etc. Business of the China companies are normal.

The subject’s business in Hong Kong is not active. History in Hong Kong is just over two years and two months.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

NOTE:

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.80
UK Pound	1	Rs.100.49
Euro	1	Rs.72.52.
HKD	1	Rs.8.63

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	TPT

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.

MIRA INFORM REPORT

Company Name

ADDRESS

BUSINESS REGISTRATION NUMBER

COMPANY FILE NUMBER

DATE OF INCORPORATION

ISSUED SHARE CAPITAL

SHAREHOLDER

DIRECTOR

SECRETARY

GENERAL

Unit