MIRA INFORM REPORT

Report Date :

22.02.2011

IDENTIFICATION DETAILS

Name :	China Resources (Boxing) Oleochemicals Co., Ltd.

Registered Office :	Boxing Industrial Park, Binzhou, Shandong Province, 256500 PR

Country :	China

Financials (as on) :	31.12.2009

Date of Incorporation :	02.12.1999

Com. Reg. No.:	371600400000601

Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise

Line of Business :	Manufacturing And Selling Fatty Acid, Fatty Amine, Glycerol, And Ramification.

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 100,000

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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

China

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

Company name and address

China Resources (Boxing) Oleochemicals Co., Ltd.

boxing industrial park, binzhou,

shandong province, 256500 PR CHINa

TEL: 86 (0) 543-2300244/2306037/2303553

FAX: 86 (0) 543-2302244/2306199

EXECUTIVE SUMMARY

INCORPORATION DATE : december 2, 1999

REGISTRATION NO. : 371600400000601

REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE

CHIEF EXECUTIVE : MR. LI HUA (CHAIRMAN)

STAFF STRENGTH : 480

REGISTERED CAPITAL : CNY 45,600,000

BUSINESS LINE : manufacturing

TURNOVER : CNY 721,910,000 (AS OF DEC. 31, 2009)

EQUITIES : CNY 17,491,000 (AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 100,000 (PERIODICAL REVIEW)

MARKET CONDITION : average

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.58 = 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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).

Company Status: Chinese-foreign equity joint venture enterprise

This form of business in PR China is defined as a legal person. It is a limited co. jointly invested by one or more foreign companies and one or more PR China controlled companies within the territories of PR China according to a certain proportion of capital investment. The investing parties exercise business management, share profits and bear all risks and liabilities of the co. together. The equity joint venture law requires that foreign party contribute not less than 25% of the registered capital, with no maximum. The investing parties are free to agree on method of profit distribution and liabilities bearing according to the proportion of capital investment. Each investing parties contributes funds, tangible assets, technology & etc. The board of directors excises the high authority. The joint venture usually has a limited duration of 10 to 50 years. Enterprise with large investment, long construction periods, low investment returns, introducing of advanced technology & advanced technology products that have good competition position in international market may extend beyond the 50 years limit.

SC’s registered business scope includes manufacturing and selling cation, anion, nonionic surfactants, and raw materials, warehouse and storage business (excluding hazardous products, limited to self-made products and materials).

SC is mainly engaged in manufacturing and selling fatty acid, fatty amine, glycerol, and ramification.

Mr. Li Hua has been the legal representative and chairman of SC since Sep. of 2010.

SC is known to have approx. 480 employees 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 Boxing county. Our checks reveal that SC owns the total premise about 150,000 square meters.

http://www.creoleochem.com The design is professional and the content is well organized. At present the web site is both in Chinese and English versions.

E-mail: sales@croc.cn creoleo@291hk.com

SC has got the certificate ISO9001, ISO14001 and OHSAS18001.

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2001-4-27	Legal representative	Huang Tieying	Zhong Yi
2002-5-21	Shareholders	Boxing Lianyuan Chemical Co., Ltd. (in Chinese Pinyin) China Resources Enterprise, Limited Group Member- Jialian Investment Company	Fudan International Investment Co., Ltd. (in Chinese Pinyin) China Resources Enterprise, Limited Group Member-Jialian Investment Company
2002-5-21	Legal Form	Chinese-Foreign Equity Joint Venture Enterprise	Wholly foreign-owned enterprise
2002-12-25	Legal representative	Zhong Yi	Qiao Shibo
2002-12-25	Shareholders	Fudan International Investment Co., Ltd. (in Chinese Pinyin) China Resources Enterprise, Limited Group Member- Jialian Investment Company	Fudan International Investment Co., Ltd. (in Chinese Pinyin) 15%; China Resources Petrochems (Group) Company Limited 85%
2006-3-27	Legal representative	Qiao Shibo	Zhu Dan
2006-10-17	Registered capital	CNY 30,000,000	CNY 45,600,000
2007-5-21	Legal Form	Wholly foreign-owned enterprise	Chinese-Foreign Equity Joint Venture Enterprise
2007-5-21	Shareholders	Fudan International Investment Co., Ltd. (in Chinese Pinyin) 15%; China Resources Petrochems (Group) Company Limited 85%	Rundanfu Chemical International Trade (Shanghai) Co., Ltd. (in Chinese Pinyin) 15% China Resources Chemicals Holdings Limited (British Virgin Islands) 85%
2009-9-28	Legal representative	Zhu Dan	Dong Qunke
2010-8-18	Shareholders	Rundanfu Chemical International Trade (Shanghai) Co., Ltd. (in Chinese Pinyin) 15% China Resources Chemicals Holdings Limited (British Virgin Islands) 85%	Rundanfu Chemical International Trade (Shanghai) Co., Ltd. (in Chinese Pinyin) 15% China Resources Chemicals Industrial Co., Ltd. 85%
2010-9-21	Shareholders	Rundanfu Chemical International Trade (Shanghai) Co., Ltd. (in Chinese Pinyin) 15% China Resources Chemicals Industrial Co., Ltd. 85%	Rundanfu Chemical International Trade (Shanghai) Co., Ltd. (in Chinese Pinyin) 75% RDF Investments (Hong Kong) Limited 25%
2010-9-21	Legal representative	Dong Qunke	Present one
2010-11-8	Shareholding	Rundanfu Chemical International Trade (Shanghai) Co., Ltd. (in Chinese Pinyin) 75% RDF Investments (Hong Kong) Limited 25%	Present ones
Unknown	Registration No.	000027	Present one

MAIN SHAREHOLDERS:

Name % of Shareholding

Rundanfu Chemical International Trade (Shanghai) Co., Ltd. (in Chinese Pinyin) 10

RDF Investments (Hong Kong) Limited 90

Rundanfu Chemical International Trade (Shanghai) Co., Ltd. (in Chinese Pinyin)

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

Legal representative: Li Hua

Registration no.: 310115400132366

Incorporation date: Aug. 27, 2003

Address: Room 303, No.118 Xinling Road, Waigaoqiao Free Trade Zone, Shanghai.

Tel: 86 021-58368943/58368949

RDF Investments (Hong Kong) Limited

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

CR No.: 1398523

Incorporation date: Dec. 4, 2009

Status: Private

l Legal representative and chairman:

Mr. Li Hua is currently responsible for the overall management of SC.

Working Experience(s):

From Sep. of 2010 to present Working in SC as legal representative and chairman

Also working in Rundanfu Chemical International Trade (Shanghai) Co., Ltd. as legal representative

l General manager:

Mr. Wu Bo, about 46 years old with university education, he is currently responsible for the daily management of SC.

Working Experience(s):

From 1999 to present Working in SC as general manager

SC is mainly engaged in manufacturing and selling fatty acid, fatty amine, glycerol, and ramification.

SC’s products mainly include: primary amines series, secondary amine series, tertiary amine series, quaternary ammonium salt series, fatty acid series, fatty amine series, and glycerol series.

SC sources its materials 70% from domestic market, mainly Shandong and Hebei Province, and 30% from overseas market, mainly Australia, Italy and Spain. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly Japan, USA and Southeast Asian market.

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 major suppliers and clients.

China Resources (Boxing) Oleochemicals Co., Ltd. Shanghai Office

Tel: 86 (0) 21-58368314

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.

Agricultural Bank of China Boxing Sub-Branch

AC#：734901040006050

Relationship: Normal.

Financial Information

Unit: CNY’000

	as of Dec. 31, 2008	as of Dec. 31, 2009
Total liabilities	304,076	354,191
Shareholders equities	46,377	17,491
	-------------	-------------
Total Assets	350,453	371,682
	-------------	-------------
Turnover	264,422	721,910
Profit before tax	-7,676	-23,277
Net profit	-9,241	-23,277

Note: we did not find SC’s detailed financial reports for Yr2008 & Yr2009.

Important Ratios

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

	as of Dec. 31, 2008	as of Dec. 31, 2009
*Liabilities to assets	0.87	0.95
*Net profit margin (%)	-3.49	-3.22
*Return on total assets (%)	-2.64	-6.26
*Turnover/Total assets	0.75	1.94

PROFITABILITY: FAIR

l The turnover of SC appears fairly good in its line, and it increased greatly in 2009.

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

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

l SC’s turnover is in a fair level in 2008 and in an average level in 2009, comparing with the size of its total assets.

LEVERAGE: FAIR

l The debt ratio of SC is high.

l The risk for SC to go bankrupt is average.

l Overall financial condition of the SC: Fair

SC is considered medium-sized in its line with fair financial conditions. A credit line up to USD 100,000 appears to be within SC’s capacities upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.11
UK Pound	1	Rs.73.25
Euro	1	Rs.61.70

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 Company	----

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.