MIRA INFORM REPORT

Report Date :

23.12.2011

IDENTIFICATION DETAILS

Name :	THE UNITED LABORATORIES (INNER MONGOLIA) CO., LTD
Registered Office :	No. 1 South Section, Fuyuan Road, Linhe Economic & Technology Park, Bayan Nur City, Inner Mongolia, 015000 Pr
Country :	China
Financials (as on) :	2010
Date of Incorporation :	09.02.2007
Com. Reg. No.:	150000400000092
Legal Form :	Wholly Foreign Owned Enterprise
Line of Business :	producing and selling chemical medicine materials and preparations, antibiotic medicine materials and preparations and Chinese medicine
No. of Employees :	2600 persons

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 6,000,000
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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 & address

The United Laboratories (Inner MongolIa) Co., Ltd.

NO. 1 SOUTH SECTION, FUYUAN ROAD, LINHE ECONOMIC & TECHNOLOGY PARK,

Bayan Nur CITY, Inner MongolIa, 015000 PR CHINA

TEL: 86 (0) 478-2266333 FAX: 86 (0) 478-2266985

EXECUTIVE SUMMARY

INCORPORATION DATE : FEB. 9, 2007

REGISTRATION NO. : 150000400000092

REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. CAI JINLE (CHAIRMAN)

STAFF STRENGTH : 2,600

REGISTERED CAPITAL : CNY 1,380,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 1,461,516,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 1,152,996,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 6,000,000

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.32 = 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 Renminbi

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 Feb. 9, 2007.

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 production of raw material medicine, tablets, hard capsules, granules; the production of 6--APA, potassium clavulanate, new energy saving and environmental protection building materials; high-strength lightweight wall materials, high-grade environment-friendly decoration, decoration material, high quality waterproof sealing material, effective thermal insulation materials and products produced in domestic, international pharmaceutical business.

SC is mainly engaged in producing and selling chemical medicine materials and preparations, antibiotic medicine materials and preparations and Chinese medicine.

Mr. Cai Jinle has been chairman of SC since 2007.

SC is known to have approx. 2,600 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the development zone of Bayan Nur City. Our checks reveal that SC owns the total premise about 280,000 square meters.

SC is not known to host website of its own at present.

Changes of its registered information are as follows:

Date	Item	Before the change	After the change
2007-9	Registered capital	CNY 50,000,000	CNY 160,000,000
	Registered no.	000998	Present one
2007-11	Registered capital	CNY 160,000,000	CNY 320,000,000
2009-5	Registered capital	CNY 320,000,000	CNY 480,000,000
2011-1	Registered capital	CNY 480,000,000	CNY 680,000,000
2011-9	Registered capital	CNY 680,000,000	Present amount

MAIN SHAREHOLDERS:

Name % of Shareholding

Bear World Limited (Hong Kong) 100

Registered number: 0537887

Incorporated date: Feb. 1, 1996

Legal form: Private

l Chairman and General Manager:

Mr. Cai Jinle, Hong Kong resident, ID# G119081(3), in his 50’s with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2007 to present Working in SC as chairman and general manager.

*1990 Founded Hong Kong United Laboratories Co., Ltd. and took up the post of Board Chairman & General Manager

*1991 The products of Hong Kong United Laboratories Co., Ltd entered the mainland market of China; successfully introduced the advanced management experience, and promoted development of the domestic pharmaceutical industry

*1993 To establish SC.

*1994 Established the United Laboratories (China) sales department.

*1995 Assumed the office of Shenyang Pharmaceutical University deputy board chairman and Prof. Hon. Of its Business Administration Academe.

*1996 Assumed the office of China Pharmaceutical University deputy board chairman

*1996 Assumed the office of Wuhan Tongji Pharmaceutical University Prof. Hon.

*1997 Awarded as "Honorary citizen of Zhuhai City" by Zhuhai Municipal People's government

*1998 Engaged by 36 medicine academies as their Prof. Hon.

*1998 Assumed the office of Guangdong Overseas Friendship Association Vice Chairman

*1999 Assumed the office of Council Member of the Guangdong Political Consultative Conference

*2002 Have made outstanding achievements in Patriotism theory and practice, be awarded as “Patriotic Star” by Chinese Patriotic Association Works.

Also working in United Laboratories (Chengdu) Co., Ltd. and Zhuhai United Laboratories Co., Ltd. as legal representative, and in Zhuhai United Laboratories Co., Ltd. Zhongshan Branch as principal.

SC is mainly engaged in producing and selling chemical medicine materials and preparations, antibiotic medicine materials and preparations and Chinese medicine.

SC’s products mainly include: chemical medicine materials and preparations, antibiotic medicine materials and preparations and Chinese medicine.

SC sources its materials 99% from domestic market, and 1% from the overseas market, mainly European countries. SC sells 90% of its products in domestic market, and 10% to the overseas market, mainly Southeast Asia, American and European countries.

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, L/C and Credit of 30-60 days.

Note: SC’s management declined to release its main clients and suppliers.

The United Laboratories International Holdings Limited (Cayman Islands)

http://www.tul.com.cn/

· United Laboratories (Chengdu) Co., Ltd.

· Zhuhai United Laboratories Co., Ltd.

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.

SC’s management declined to release its bank information.

Financial summary

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

Unit CNY’000

2009 2010

Total liabilities 1,635,834 1,809,507

Equities 510,847 1,152,996

Total liabilities & equities 2,146,681 2,962,503

Turnover 880,054 1,461,516

Profit before tax 146,041 288,170

Profits 146,041 258,119

Note: We did not find SC’s detailed financial reports from local AIC.

Important Ratios

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

	2009	2010
*Liabilities to assets	0.76	0.61
*Net profit margin (%)	16.59	17.66
*Return on total assets (%)	6.80	8.71
*Turnover/Total assets	0.41	0.49

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good in 2009, and good in 2010.

l SC’s net profit margin is good.

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

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

LEVERAGE: AVERAGE

l The debt ratio of SC is average in 2010.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered large-sized in its line with fairly stable financial conditions. A credit line of the above stated amount appears to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.78
UK Pound	1	Rs.82.73
Euro	1	Rs.68.88

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.