MIRA INFORM REPORT

Report No. :	511394
Report Date :	30.05.2018

IDENTIFICATION DETAILS

Name :	YEE FUNG HONG LIMITED
Registered Office :	Unit HB, 20/F., Block 2, Kingswin Industrial Building, 32-50 Lei Muk Road, Kwai Chung, New Territories
Country :	Hongkong
Date of Incorporation :	30.03.2007
Com. Reg. No.:	37795337
Legal Form :	Private Limited Company.
Line of Business :	Importer, Exporter and Wholesaler of all kinds of buttons, zipper pullers, carvings.
No. of Employees :	8

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Hongkong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Excess liquidity, low interest rates and a tight housing supply have caused Hong Kong property prices to rise rapidly. The lower and middle-income segments of the population increasingly find housing unaffordable.

Hong Kong's open economy has left it exposed to the global economic situation. Its continued reliance on foreign trade and investment makes it vulnerable to renewed global financial market volatility or a slowdown in the global economy.

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 surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. After peaking in 2014, overall tourist arrivals dropped 2.5% in 2015 and 4.5% in 2016. The tourism sector rebounded in 2017, with visitor arrivals rising 3.2% to 58.47 million. Travelers from Mainland China totaled 44.45 million, accounting for 76% of the total.

The Hong Kong Government is promoting the Special Administrative Region (SAR) as the preferred business hub for 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, RMB trade settlement is allowed, and investment schemes such as the Renminbi Qualified Foreign Institutional Investor (RQFII) Program was first launched in Hong Kong. Offshore RMB activities experienced a setback, however, after the People’s Bank of China changed the way it set the central parity rate in August 2015. RMB deposits in Hong Kong fell from 1.0 trillion RMB at the end of 2014 to 559 billion RMB at the end of 2017, while RMB trade settlement handled by banks in Hong Kong also shrank from 6.8 trillion RMB in 2015 to 3.9 trillion RMB in 2017.

Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 66% 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. 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 (CEPA), adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, which took effect in March 2015, cover a negative list and a most-favored treatment provision. On the basis of the Guangdong Agreement, the Agreement on Trade in Services signed in November 2015 further enhanced liberalization, including extending the implementation of the majority of Guangdong pilot liberalization measures to the whole Mainland, reducing the restrictive measures in the negative list, and adding measures in the positive lists for cross-border services as well as cultural and telecommunications services. In June 2017, the Investment Agreement and the Agreement on Economic and Technical Cooperation (Ecotech Agreement) were signed under the framework of CEPA.

Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Hong Kong- Shenzhen Stock Connect the Mutual Recognition of Funds, and the Bond Connect scheme are all important steps towards opening up the Mainland’s capital markets and have reinforced Hong Kong’s role as China’s leading offshore RMB market. Additional connect schemes such as ETF Connect (for exchange-traded fund products) are also under exploration by Hong Kong authorities. In 2017, Chief Executive Carrie LAM announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

Source : CIA

COMPANY NAME AND ADDRESS

YEE FUNG HONG LIMITED

ADDRESS: Unit HB, 20/F., Block 2, Kingswin Industrial Building, 32-50 Lei Muk Road, Kwai Chung, New Territories, Hong Kong.

PHONE: 852-2489 0680

FAX: 852-2429 9326

E-MAIL: wilsonws@yeefunghong.hk

MANAGEMENT

Managing Director: Mr. Chiu Wai Sun

SUMMARY

Incorporated on: 30th March, 2007.

Organization: Private Limited Company.

Issued Share Capital: HK$10,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 8.

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Unit HB, 20/F., Block 2, Kingswin Industrial Building, 32-50 Lei Muk Road, Kwai Chung, New Territories, Hong Kong.

China Factory:-

Dongguan Jiayu Button Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

37795337

COMPANY FILE NUMBER

1119846

MANAGEMENT

Managing Director: Mr. Chiu Wai Sun

ISSUED SHARE CAPITAL

HK$10,000.00

SHAREHOLDERS

(As per registry dated 30-03-2018)

Name		No. of shares
CHIU Wai Sun		7,000
CHIU CHAN Kwai Ning		1,500
CHIU Kwun Kiu, Kelvin		1,500
		––––––
	Total:	10,000 =====

DIRECTORS

(As per registry dated 30-03-2018)

Name (Nationality)	Address
CHIU Kwun Kiu, Kelvin	Flat C, 4/F., Block A, Kwong Sang Hong Building, 298 Hennessy Road, Wanchai, Hong Kong.
CHIU Wai Sun	Flat C, 4/F., Block A, Kwong Sang Hong Building, 298 Hennessy Road, Wanchai, Hong Kong.

SECRETARY

(As per registry dated 30-03-2018)

Name	Address
CHIU CHAN Kwai Ning	Flat C, 4/F., Block A, Kwong San Hong Building, 298 Hennessy Road, Hong Kong.

HISTORY

The subject was incorporated on 30th March, 2007 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: All kinds of buttons, zipper pullers, carvings.

Employees: 8.

Commodities Imported: China, other Asian countries, etc.

Markets: China, other Asian countries, Europe, North America, etc.

Terms/Sales: As per contracted.

Terms/Buying: L/C, T/T, O/A, etc.

FINANCIAL INFORMATION

Issued Share Capital: HK$10,000.00

Mortgage or Charge:-

Date of Mortgage: 31-05-2013

Amount: To secure all monies general banking facilities

Property: 7/7,236th parts or shares of and in Section B of Lot No. 277 in D.D. 444 (Workshop HA on 20/F. of Block II, Kingswin Industrial Building, 32-50 Lei Muk Road, Kwai Chung, New Territories, Hong Kong.)

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

Profit or Loss: Made small profits in past years.

Condition: Keeping in a satisfactory manner.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

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

Standing: Normal.

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Yee Fung Hong Limited is jointly owned by Mr. Chiu Wai Sun, holding 70% interests; Mrs. Chiu Chan Kwai Ning, holding 15%, and Mr. Chiu Kwun Kiu, Kelvin, also 15%.

The first and third are directors of the subject.

The subject is trading in environmental friendly Corozo buttons, zipper pullers and carvings, etc.

Its in-house factory is in Dongguan, Guangdong Province, China.

The subject is using a kind of nut known as ‘Tagua nut’ to manufacture buttons.

In 1987, Wilson Chiu, who is the founder of the subject, travelled to South America pursuing suppliers of this raw material Tagua nut. Later in the year, he established a factory (named Wei Tong Button Factory) in mainland China. He began producing Tagua carvings and jewellery and sold them in great demand around the world.

In 1997, the subject shifted its focus towards primarily producing and wholesaling buttons and zipper pullers made from the same Tagua nut (garment accessories made with Tagua nuts are referred to as Corozo). To this day, the subject continues to supply Corozo blanks, buttons and zipper pullers to the international market.

The subject is engaged in the following business scope:

· Wholesale of Tagua nuts

· Wholesale of Corozo button blanks

· Produce / wholesale of Corozo buttons & zipper pullers

· Wholesale of current inventory to retailers

· Produce / wholesale of hand crafted Tagua carvings & jewellery

The subject sells its raw materials or products to the following customers:

· Worldwide button factories

· Worldwide garment factories

· Leather factories

· Fashion design companies

· Trading companies

· Carving craft factories

The subject’s products are marketed in China and exported to worldwide countries.

The business of the subject is chiefly handled by Mr. Chiu Wai Sun himself. History in Hong Kong is over eleven years and two months.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.82
UK Pound	1	INR 90.17
Euro	1	INR 78.70
HKD	1	INR 8.64

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

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.