MIRA INFORM REPORT

Report Date :

23.04.2007

IDENTIFICATION DETAILS

Name :	APC (XIAMEN) POWER INFRASTRUCTURE CO., LTD.
Registered Office :	No. 1678 Jixian Road, Tong’an District, Xiamen, Fujian Province, 361100 Pr
Country :	China
Financials (as on) :	31.12.2006
Date of Incorporation :	JAN. 12, 2005
Com. Reg. No.:	06585
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturing and selling UPS systems.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	Up To usd 100,000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear

name & address

APC (XIAMEN) POWER INFRASTRUCTURE CO., LTD.

NO. 1678 JIXIAN ROAD, TONG’AN DISTRICT, XIAMEN,

FUJIAN PROVINCE, 361100 PR CHINA

TEL : 86 (0) 592-7572714

FAX : 86 (0) 592-7896930

EXECUTIVE SUMMARY

INCORPORATION DATE : JAN. 12, 2005

REGISTRATION NO. : 06585

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. MICHAEL RICCI (CHAIRMAN)

STAFF STRENGTH : 190

REGISTERED CAPITAL : USD 10,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : cny 119,470,000 (AS OF DEC. 31, 2006)

EQUITIES : cny 35,180,000 (AS OF DEC. 31, 2006)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : up to usd 100,000 (PERIODICAL REVIEW)

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : FAIR

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 7.73= US$1 AS OF 2007-4-23

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

CNY - China Yuan Ren Min Bi

SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jan. 12, 2005.

Company Status: Wholly foreign-owned enterprise

This form of business in PR China is defined as a legal person. It is a limited co. established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investors may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.

SC’s registered business scope includes designing, manufacturing UPS systems, power management products and other related products and parts; providing the related installing and after sale consulting service.

SC is mainly engaged in manufacturing and selling UPS systems.

Mr. MICHAEL RICCI has been chairman of SC since 2005.

SC owns about 190 staff at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Xiamen. Our checks reveal that SC rents the total premise about 11,000 square meters.

http://www.apcc.com The design is professional and the content is well organized. At present it is in English version.

No significant events or changes were found during our checks with local AIC.

MAIN SHAREHOLDERS:

Name % of Shareholding

American Power Conversion Corporation 100

l Chairman:

Mr. MICHAEL RICCI, American, in his 50’s with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2005 to present Working in SC as chairman.

l General Manager:

Mr. Wang Bingwen, in his 40’s with university education. He is currently responsible for the daily management of SC.

Working Experience(s):

From 2005 to present Working in SC as general manager.

SC is mainly engaged in manufacturing and selling UPS systems.

SC’s products mainly include: UPS systems (NCPI products).

SC sources its materials 70% from domestic market and 30% from the overseas markets mainly from Europe. SC sells 94% of its products in domestic market and 6% to the overseas markets, mainly to Europe.

The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T and Credit of 30-60 days.

*Major Client:

============

Beida Jade Bird Group

*major Supplier:

=============

Shanghai Yachuang Electronics Co., Ltd.

SC is not known to have any subsidiary at present.

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment and our debt collection record concerning SC.

Trade payment experience : SC refused to release any information of its suppliers and the trade reference was not available.

Delinquent payment record : None in our database.

Debt collection record : No overdue amount owed by SC was placed to us for collection within the last 6 years.

Industrial and Commercial Bank of China Tong’an Sub-Branch

AC#：4100022909200031122

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2006
Cash & bank	38,410
Accounts payable advance	0
Accounts receivable	35,470
Inventory	22,700
Other receivables	3,550
Other current assets	1,320
	------------------
Current assets	101,450
Fixed assets net value	38,130
Projects under construction	0
Long term investment	0
Other assets	0
	------------------
Total assets	139,580
	=============
Short loans	0
Accounts payable	63,900
Accounts receivable advance	80
Taxes payable	4,230
Salaries payable	1760
Other payable	25,820
Other current liabilities	8,610
	------------------
Current liabilities	104,400
Long term liabilities	0
	------------------
Total liabilities	104,400
Equities	35,180
	------------------
Total liabilities & equities	139,580
	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2006
Turnover	119,470
Cost of goods sold	103,720
Sales expense	12,940
Management expense	20,600
Finance expense	-1,070
Profit before tax	-17,370
Less: profit tax	0
Profits	-17,370

Important Ratios

=============

	as of Dec. 31, 2006
*Current ratio	0.97
*Quick ratio	0.75
*Liabilities to assets	0.75
*Net profit margin (%)	-14.54
*Return on total assets (%)	-12.44
*Fixed assets/Total assets	0.27
*Inventory /Turnover ×365	69days
*Accounts receivable/Turnover ×365	108days
*Turnover/Total assets	0.86
* Cost of goods sold/Turnover	0.87

PROFITABILITY: FAIR

l The turnover of SC appears average in its line.

l SC’s net profit margin is fairly poor.

l SC’s return on total assets is fairly poor.

l SC’s cost of goods sold is average, comparing with its turnover.

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a fair level.

l SC’s quick ratio is maintained in a fair level.

l The inventory of SC is maintained in a normal level.

l The accounts receivable of SC appears fairly large.

l The accounts payable of SC appears LARGE.

l SC’s turnover is in an acceptable level, comparing with the size of its total assets.

LEVERAGE: FAIR

l The debt ratio of SC is fairly high.

l The risk for SC to go bankrupt is above average.

Overall financial condition of the SC: Fair.

SC is considered medium-sized in its line with fair financial conditions. A credit line up to USD100,000 would appear to be within SC’s capacities upon a periodical review basis.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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