MIRA INFORM REPORT

Report Date :

18.02.2011

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) :	31.12.2009
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 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	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

EXECUTIVE SUMMARY

INCORPORATION DATE : DECEMBER 22, 2004

REGISTRATION NO. : 131000400002366

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise

CHIEF EXECUTIVE : MR. robert baron rubio (CHAIRMAN)

STAFF STRENGTH : 400

REGISTERED CAPITAL : USD 45,369,624

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 168,809,000 (AS OF DEC. 31, 2009)

EQUITIES : CNY 62,752,000 (AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 100,000 (periodical review)

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : POOR

OPERATIONAL TREND : fairly steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.59040 = 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 Dec. 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	Robert Baron Rubio
2010-12	Registered capital	USD 22,150,000	USD 45,369,624

MAIN SHAREHOLDERS:

Name % of Shareholding

Libbey Asia Limited (Hong Kong)

100

Registration no.: 0926351

Registered legal form: private

Incorporation date: 2004-10-6

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 chairman and legal representative

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.

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, 2008	as of Dec. 31, 2009
Cash & bank	12,420	17,687
Inventory	97,250	72,584
Accounts receivable	4,580	13,618
Advances to supplies	630	675
Notes receivable	0	4,000
Other receivables	2,860	2,875
To be apportioned expense	0	1,413
Other current assets	3,710	0
	------------------	------------------
Current assets	121,450	112,852
Fixed assets net value	415,700	395,382
Projects under construction	16,700	523
Long-term investments	0	0
Intangible assets	11,960	11,710
Long-term deferred expense	0	1,781
Other assets	2,580	0
	------------------	------------------
Total assets	568,390	522,248
	=============	=============
Short loans	0	0
Accounts payable	125,800	123,230
Advances from customers	13,490	3,697
Accrued payroll	530	2,213
Taxes payable	1,990	2,989
Other Accounts payable	2,180	5,143
Long-term liabilities due with in one year	21,220	72,224
Other current liabilities	10	0
	-----------------	-----------------
Current liabilities	165,220	209,496
Long term liabilities	300,000	250,000
	------------------	-----------------
Total liabilities	465,220	459,496
Shareholders equities	103,170	62,752
	------------------	------------------
Total liabilities & equities	568,390	522,248
	=============	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2008	as of Dec. 31, 2009
Turnover	133,460	168,809
Cost of goods sold	125,040	168,094
Sales expense	6,340	6,087
Management expense	8,100	13,890
Finance expense	15,380	20,818
Non-operating income	10	144
Non-operating expense	180	484
Operation Profit	-21,570	-40,420
Less: profit tax	0	0
Net profit	-21,570	-40,420

Important Ratios

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

	as of Dec. 31, 2008	as of Dec. 31, 2009
*Current ratio	0.74	0.54
*Quick ratio	0.15	0.19
*Liabilities to assets	0.82	0.88
*Net profit margin (%)	-16.16	-23.94
*Return on total assets (%)	-3.79	-7.74
*Inventory /Turnover ×365	266 days	157 days
*Accounts receivable/Turnover ×365	13 days	29 days
*Turnover/Total assets	0.23	0.32
* Cost of goods sold/Turnover	0.94	1.00

PROFITABILITY: POOR

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

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

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

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

LIQUIDITY: POOR

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

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

l The inventory of SC appears large in both years.

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

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

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

LEVERAGE: FAIR

l The debt ratio of SC is fairly high.

l The risk for SC to go bankrupt is fairly high.

Overall financial condition of the SC: Poor.

SC is considered medium-sized in its line with poor financial conditions. A credit line up to USD 100,000 appears acceptable upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.38
UK Pound	1	Rs.73.08
Euro	1	Rs.61.60

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.