MIRA INFORM REPORT

Report Date :

04.01.2008

IDENTIFICATION DETAILS

Name :	CHEM-BASE (NANTONG) LABORATORIES CO., LTD.
Registered Office :	Room 403, Huali Building, No. 6, Gongnong Road, Nantong City Jiangsu Province 226007
Country :	China
Financials (as on) :	31.12.2006
Date of Incorporation :	20.11.2001
Com. Reg. No.:	3206912101438
Legal Form :	Limited Liability Company
Line of Business :	Exporting Chemical Materials and Products.

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.	Small

Maximum Credit Limit :	USD50,000
Status :	Small Company
Payment Behaviour :	No Complaints
Litigation :	Clear

name and address of the company

CHEM-BASE (NANTONG) LABORATORIES CO., LTD.

ROOM 403, HUALI BUILDING, NO. 6, GONGNONG ROAD, NANTONG CITY

JIANGSU PROVINCE 226007 PR CHINA

TEL: 86 (0) 513-85221310

FAX: 86 (0) 513-83574022

EXECUTIVE SUMMARY

INCORPORATION DATE : NOV. 20, 2001

REGISTRATION NO. : 3206912101438

REGISTERED LEGAL FORM : LIMITED LIABLITIES COMPANY

CHIEF EXECUTIVE : MR. JIANG JUBING (CHAIRMAN)

STAFF STRENGTH : 12

REGISTERED CAPITAL : CNY 5,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 58,860,000 (AS OF DEC. 31, 2006)

EQUITIES : CNY 5,480,000 (AS OF DEC. 31, 2006)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 50,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : STEADy

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY7.30 = US$1

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 reregistered as a limited liabilities company at local Municipal Administration for Industry & Commerce(AIC-The official body of issuing and renewing business license) on Nov 20, 2001.

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. At least two shareholders and no more than fifty contribute its registered capital jointly. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics of this form of co. are as follows:

Upon the establishment of the co., an investment certificate is issued to the each of shareholders.

The board of directors is comprised of three to thirteen members.

The minimum registered capital for a co. is listed as follows:

-manufacturing co. : CNY 500,000.00

-trading &wholesaling co. : CNY 500,000.00

-retailing co. : CNY 300,000.00

-consultancy & service co. : CNY 100,000.00

Shareholders may take their capital contributions in cash or by means of tangible assets or intangible assets such as industrial property and non-patented technology.

Cash contributed by all shareholders must account for at least 30% of the registered capital.

Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the other shareholders and to subscribe for the newly increased registered capital of the co.

SC’s registered business scope includes importing and exporting commodity & technology; selling knitting goods, textiles and raw materials, garments, labor protection products, handicraft, hardware machinery and components, daily chemicals, agricultural chemicals, medical accessories, dyestuff and its intermediate, plastic materials and products, lumber and wooden products, saleratus, sodium thiosulfate, office supplies, paper products, hardware appliance, communication facility, automobiles and components, building materials, hardware tools knit goods, textile, grocery, agricultural product, and byproduct; and information consulting of chemicals.

SC is mainly engaged in exporting chemical materials and products.

Mr. Jiang Jubing has been chairman of SC since 2001.

SC owns approximately 12 staff at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. Our checks reveal that SC rents the total premise about 100 square meters.

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

E-mail: post@chem-base.com

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Jiang Jubing 64

Jiang Jingwei 30

Zeng Dongmei 5

You Bifang 0.5

Zhang Wanxia 0.3

Liu Jinming 0.2

l Chairman and General Manager:

Mr. Jiang Jubing (蒋居兵), born in 1966, 41 years old with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2001 to present Working in SC as chairman and general manager.

SC is mainly engaged in exporting chemical materials and products.

SC’s products mainly include:

s Nutritional products

s Food additives

s Personal care ingredients & Biocides

s Herbal extracts

s Fine chemicals

s Pharmaceutical Intermediates

s Veterinarian Medicines

s Dyestuff Intermediates

s Ferrocene and its Derivatives

s Specialty Chemicals

s Pesticides

s Custom synthesis/Contact Research

SC sources its materials 100% from domestic market, mainly Jiangsu and Zhejiang province. SC sells 100% of its products to overseas market, mainly Germany, America, and Korea.

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, Check and Credit of 30-60 days.

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 did not provide any name of trade/service suppliers and we have no other sources to conduct the enquiry at present.

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.

Bank of China

AC#：840417265808091001

Relationship: Normal.

Balance Sheet (as of Dec. 31, 2006)

Unit: CNY’000

Cash & bank	7,190
Inventory	7,680
Accounts receivable	10,700
Other Accounts receivable	2,240
Accounts payable in advance	0
To be apportioned expense	0
Other current assets	370
	------------------
Current assets	28,180
Fixed assets	1,840
Long term investment	0
Other assets	160
	------------------
Total assets	30,180
	=============
Short loans	960
Bills payable	4,440
Accounts payable	3,230
Accounts receivable in advance	4,870
Other Accounts payable	2,910
Withdraw the expenses in advance	0
Other current liabilities	8,290
	------------------
Current liabilities	24,700
Long term liabilities	0
Other liabilities	0
	------------------
Total liabilities	24,700
Equities	5,480
	------------------
Total liabilities & equities	30,180
	=============

Income Statement (as of Dec. 31, 2006)

Unit: CNY’000

Turnover	58,860
Cost of goods sold	54,050
Sales expense	2,020
Management expense	1,400
Finance expense	1,350
Profit before tax	340
Less: profit tax	210
Profits	130

Important Ratios (as of Dec. 31, 2006)

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

*Current ratio 1.14

*Quick ratio 0.83

*Liabilities to assets 0.82

*Net profit margin (%) 0.22

*Return on total assets (%) 0.43

*Inventory /Turnover ×365 48 days

*Accounts receivable/Turnover ×365 66 days

*Turnover/Total assets 1.95

* Cost of goods sold/Turnover 0.92

PROFITABILITY: AVERAGE

l The turnover of SC appears fairly good in its line.

l SC’s net profit margin is acceptable.

l SC’s return on total assets is acceptable.

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

LIQUIDITY: AVERAGE

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

l The short-term loan of SC is maintained in a normal level.

l SC’s turnover is in a fairly good level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is fairly high.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Stable.

SC is considered small-sized in its line with stable financial conditions. A credit line up to USD50,000 would appear to be within SC’s capacities.

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.	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