MIRA INFORM REPORT

Report Date :

02.08.2011

IDENTIFICATION DETAILS

Name :	TIANJIN TIANMAO TECHNOLOGY DEVELOPMENT CORP., LTD.

Registered Office :	Room 507-511, Building A, Hi Tech Building, No. 6 Huatian Road, Huayuan Industry Park, Tianjin 300384 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	19.05.2003

Com. Reg. No.:	120193000036928

Legal Form :	Limited Liabilities Company

Line of Business :	Exporting Chemical Materials

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 80,000
Status :	Moderate
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 – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

China

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name & address

TIANJIN TIANMAO TECHNOLOGY DEVELOPMENT CORP., LTD.

ROOM 507-511, BUILDING A, HI TECH BUILDING

NO. 6 HUATIAN ROAD, HUAYUAN INDUSTRY PARK

TIANJIN 300384 PR CHINA

TEL: 86 (0) 22-23709100/23703100/23709200

FAX: 86 (0) 22-23709700

EXECUTIVE SUMMARY

Date of Registration : may 19, 2003

REGISTRATION NO. : 120193000036928

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : GUO CHUNNING (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 5,000,000

staff : 11

BUSINESS CATEGORY : trading

Revenue : CNY 80,510,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 9,940,000 (AS OF DEC. 31, 2010)

WEBSITE : www.tianmao.biz

E-MAIL : info@tianmao.biz

PAYMENT : AVERAGE

Recommended Credit Limit: UP TO USD 80,000

MARKET CONDITION : average

FINANCIAL CONDITION : FAIRly stable

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.44 = USD 1

Adopted abbreviations

(as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

Not yet be determined

LEGAL STATUS & HISTORY

***Note: SC’s name should be the heading one, while Hong Kong Tiangao International Economic Development Corporate Limited (the given name) is SC’s related company registered in Hong Kong, SC always uses this name as its trade name.

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 120193000036928 on may 19, 2003.

SC’s Organization Code Certificate No.: 749126078

SC’s registered capital: CNY 5,000,000

SC’s paid-in capital: CNY 5,000,000

Registration Change Record:

Date	Change of Contents	Before the change	After the change
--	Registered No.	1201932004231	120193000036928
May 2010	Legal Representative	Wan Daqian	Guo Chunning
May 2010	Shareholder (s) (% of Shareholding)	Wan Daqian90% Hu Yanmei10%	Guo Chunning 90% Hu Yanmei10%

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)

% of Shareholding

Guo Chunning

Hu Yanmei

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Guo Chunning
Supervisor	Hu Yanmei

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Guo Chunning 90

Hu Yanmei 10

MANAGEMENT

Guo Chunning, Legal Representative, Chairman and General Manager

-------------------------------------------------------------------------------------------------------

Ø Gender: M

Ø Age: 40’s

Ø Qualification: University

Ø Working experience (s):

From May 2010 to present, working in SC as legal representative, chairman and general manager

Hu Yanmei , Supervisor

------------------------------------------

Ø Gender: F

Ø Qualification: University

BUSINESS OPERATION

SC’s registered business scope includes technical development, consultation, transfer, and services of biology & electric information; selling household appliances and machinery used for culture & office.

SC is mainly engaged in exporting chemical materials.

SC’s products mainly include:

ü 11-Hydroxy Canrenone

ü 16 Alpha Hydroxy Prednisolone

ü 16 Alpha Hydroxy-Prednisolone

ü 16 Alpha Methyl Epoxide

ü 16 Beta Methyl Epoxide

ü 5Beta,6Beta-epoxy-7Beta-Hydroxy-15Beta,16Beta-Methylene-3Beta-Pivaloyloxy-5-andr

ü 6,9-Difluorin-11-dydroxy-16-methyl-3-oxo-17 propionyloxyandrost-1,4-diene-17-thi

SC sources its materials 95% from domestic market, and 5% from overseas market, mainly Hong Kong. SC sells 20% in domestic market, mainly Beijing, Tianjin, and Shanghai, and 80% to overseas market, mainly Hong Kong.

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

*Major Customer:

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

Shanghai Pharmaceutical (Group) Co., Ltd.

Staff & Office:

--------------------------

SC is known to have approx. 11 staff at present.

SC rents an area as its operating office of approx. 150 sq. meters at the heading address.

RELATED COMPANY

SC is known to have 2 subsidiaries at present,

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

u Lijiang Yinghua Biology Pharmaceutical Co., Ltd. (in Chinese Pinyin)

u Tianjin Xianyao International Trade Co., Ltd. (in Chinese Pinyin)

Related Company,

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

u Hong Kong Tiangao International Economic Development Corporate Limited

Company File No: 0825011

Date of Registration: December 11, 2002

Legal Form: Private

Status: Live

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.

BANKING

Basic Bank:

Agricultural Bank of China Nanjing Road Sub-branch

AC# 240001040006130

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Cash	15,270	37,650
Accounts receivable	22,780	9,070
Advances to suppliers	0	0
Other receivable	5,700	5,700
Inventory	11,350	4,830
Non-current assets within one year	0	0
Other current assets	0	0
	------------------	------------------
Current assets	55,100	57,250
Fixed assets	410	280
Construction in progress	0	0
Intangible assets	0	0
Long-term investment	18,680	18,680
Deferred income tax assets	0	0
Other non-current assets	0	0
	------------------	------------------
Total assets	74,190	76,210
	=============	=============
Short-term loans	0	0
Notes payable	0	0
Accounts payable	29,730	30,020
Wages payable	0	0
Tax payable	-600	510
Other payable	37,260	35,740
Other current liabilities	0	0
	------------------	------------------
Current liabilities	66,390	66,270
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	66,390	66,270
Equities	7,800	9,940
	------------------	------------------
Total liabilities & equities	74,190	76,210
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Revenue	95,870	80,510
Cost of sales	85,170	71,540
Sales expense	1,740	2,430
Management expense	2,410	3,460
Finance expense	3,940	910
Profit before tax	2,980	2,900
Less: profit tax	740	730
Profits	2,240	2,170

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Current ratio	0.83	0.86
*Quick ratio	0.66	0.79
*Liabilities to assets	0.89	0.87
*Net profit margin (%)	2.34	2.70
*Return on total assets (%)	3.02	2.85
*Inventory / Revenue ×365	43 days	22 days
*Accounts receivable/ Revenue ×365	87 days	42 days
* Revenue/Total assets	1.29	1.06
* Cost of sales / Revenue	0.89	0.89

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears fairly good, but it was decreasing in 2010.

l SC’s net profit margin is average in both years.

l SC’s return on total assets is average in both years.

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

LIQUIDITY: FAIR

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

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

l The inventory of SC is maintained in an average level.

l The accounts receivable of SC is maintained in an average level in 2010.

l SC has no short-term loan in both years.

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

LEVERAGE: FAIR

l The debt ratio of SC is fairly high in both years.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

SC is considered small-sized in its line with fairly stable financial conditions. A credit line up to USD 80,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.05
UK Pound	1	Rs.72.40
Euro	1	Rs.63.46

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.