MIRA INFORM REPORT

Report Date :

18.08.2011

IDENTIFICATION DETAILS

Name :	libbey glassware (china) Co., Ltd.
Registered Office :	No. 2211, East Aimin Road, Langfang Economic And Technical Development Zone, Hebei Province, 065001 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	22.12.2004
Com. Reg. No.:	131000400002366
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturing and selling glassware

RATING & COMMENTS

MIRA’s Rating :

B

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

Maximum Credit Limit :	USD 200,000
Status :	Moderate
Payment Behaviour :	Usually Correct
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	A2	A2

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

Company name and address

libbey glassware (china) Co., Ltd.

NO. 2211, EAST AIMIN ROAD, LANGFANG ECONOMIC AND TECHNICAL DEVELOPMENT ZONE, HEBEI PROVINCE, 065001 PR CHINA

TEL: 86 (0) 316-6089898 FAX: 86 (0) 316-6060989/6065001/ 6060509

EXECUTIVE SUMMARY

INCORPORATION DATE : DECEMBER 22, 2004

REGISTRATION NO. : 131000400002366

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. robert baron rubio (LEGAL REPRESENTATIVE)

STAFF STRENGTH : 400

REGISTERED CAPITAL : USD 45,369,624

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 216,420,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 153,470,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 200,000 (PERIODICAL REVIEW)

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3865=USD 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 registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on December 22, 2004.

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 investor 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 and manufacturing special glassware, and selling its products.

SC is mainly engaged in manufacturing and selling glassware.

Mr. Robert Baron Rubio has been legal representative and chairman of SC since August, 2010.

SC is known to have approx. 400 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the economic and technical development zone of Langfang. Our checks reveal that SC owns the total premise about 14,000 square meters.

http://www.libbey.cn The website belongs to Libbey Glass Inc., which also consists of the introduction about SC. The design is professional and the content is well organized. At present it is in both Chinese and English versions.

Email: HRLibbeyChina@libbey.cn

SC started its business normally in March, 2007.

Changes of its registered information:

Date of change	Item	Before the change	After the change
2010-8	Legal representative	Kenneth G Wilkes	Present one
2010-12	Registered capital	USD 22,150,000	Present amount

MAIN SHAREHOLDERS:

Name % of shareholdings

Libbey Asia Limited (Hong Kong) 100

Registration no.: 0926351

Registered legal form: private

Incorporation date: 2004-10-6

Active Status: Live

l Legal representative and chairman:

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

Working Experience(s):

From August, 2010 to present Working in SC as legal representative and chairman.

SC started its business normally in March, 2007.

SC is mainly engaged in manufacturing and selling glassware.

SC sources its materials 99% from domestic market, and 1% from overseas market, mainly U.S.A. and Turkey. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly South America and Europe countries.

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

Note: SC refused to release its main customers and suppliers

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.

China Construction Bank Langfang Economic and Technical Development Zone Sub-branch

AC#：13001705208050500482

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2010
Cash & bank	25,460
Short-term investments	0
Inventory	79,580
Accounts receivable	19,950
Advances to suppliers	570
Other accounts receivable	5,920
Prepaid expenses	1,050
Other current assets	0
	------------------
Current assets	132,530
Fixed assets net value	360,230
Project under construction	460
Long term prepaid expenses	740
Intangible and other assets	11,450
	------------------
Total assets	505,410
	=============
Short loans	0
Accounts payable	56,210
Advances from clients	1,120
Welfare payable	450
Accrued payroll	2,860
Taxes payable	5,500
Accrued expenses	5,130
Other accounts payable	30,260
Long term liabilities due within one year	410
Other current liabilities	0
	------------------
Current liabilities	101,940
Long-term liabilities	250,000
	------------------
Total liabilities	351,940
Equities	153,470
	------------------
Total liabilities & equities	505,410
	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2010
Turnover	216,420
Cost of goods sold	177,780
Sales expense	11,190
Management expense	17,210
Finance expense	15,570
Non-operating income	740
Non-operating expense	210
Profit before tax	-4,800
Less: profit tax	0
Profits	-4,800

Important Ratios

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

	As of Dec. 31, 2010
*Current ratio	1.30
*Quick ratio	0.52
*Liabilities to assets	0.70
*Net profit margin (%)	-2.22
*Return on total assets (%)	-0.95
*Inventory /Turnover ×365	134 days
*Accounts receivable/Turnover ×365	34 days
*Turnover/Total assets	0.43
* Cost of goods sold/Turnover	0.82

PROFITABILITY: FAIR

l The turnover of SC appears fairly good in 2010.

l SC’s net profit margin appears fair in 2010.

l SC’s return on total assets appears fair in 2010.

l SC’s cost of goods sold is average in 2010, comparing with its turnover.

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a normal level in 2010.

l SC’s quick ratio is maintained in a fair level in 2010.

l The inventory of SC appears large in 2010.

l The accounts receivable of SC appears average in 2010.

l SC has no short-term loan in 2010.

l SC’s turnover is in a fair level in 2010, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is average.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fair

SC is considered medium-sized in its line with fair financial conditions. The large amount of inventory could be a threat to SC’s financial condition. A credit line up to USD 200,000 appears to be within SC’s capacities upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.37
UK Pound	1	Rs.74.56
Euro	1	Rs.65.33

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.