MIRA INFORM REPORT

Report Date :

29.07.2011

IDENTIFICATION DETAILS

Name :	SHENZHEN 1-TOUCH BUSINESS SERVICE LTD.

Registered Office :	Room 710-712 Diwang Commercial Centre, Shun Hing Square, No. 5002 Shennan East Road, Luohu District, Shenzhen, Guangdong Province 518000 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	05.12.2001

Com. Reg. No.:	440301103275393

Legal Form :	Limited Liabilities Company

Line of Business :	Providing Trade Service, including customs, tax, foreign exchange, finance, logistics and etc.

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 50,000

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

SHENZHEN 1-TOUCH BUSINESS SERVICE LTD.

room 710-712 diwang commercial centre

shun hing square, no. 5002 shennan east road

luohu district, shenzhen, guangdong province 518000 PR CHINA

TEL: 86 (0) 755-22163680

FAX: 86 (0) 755-25830475

EXECUTIVE SUMMARY

Date of Registration : december 5, 2001

REGISTRATION NO. : 440301103275393

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : wei qiang (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 21,782,977

staff : 160

BUSINESS CATEGORY : trading service

Revenue : CNY 549,690,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 8,070,000 (AS OF DEC. 31, 2010)

WEBSITE : www.ydt35.com

E-MAIL : service@ydt35.com

PAYMENT : AVERAGE

Recommended Credit Limit: UP TO USD 50,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : ORDINARY

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

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 440301103275393 on December 5, 2001.

SC’s Organization Code Certificate No.: 734141160

SC’s registered capital: cny 21,782,977

SC’s current paid-in capital: cny 21,782,977

Registration Change Record:

Date	Change of Contents	Before the change	After the change
2002-2-26	Legal Representative	Wei Qiang	Cui Wei
2003-2-17	Registered Capital	CNY 3,000,000	CNY 10,000,000
2003-8-1	Company Name	Shenzhen Badatong Import & Export Trade Co., Ltd.	Shenzhen Badatong Import & Export Co., Ltd.
2003-8-1	Legal Representative	Cui Wei	Wei Qiang
2004-2-9	Registered Capital	CNY 10,000,000	CNY 11,000,000
2004-9-6	Company Name	Shenzhen Badatong Import & Export Co., Ltd.	Shenzhen 1-Touch Business Service Ltd.
2008-4-8	Registration No.	4403012078614	440301103275393
2008-4-8	Registered Capital	CNY 11,000,000	CNY 12,100,000
2009-6-10	Registered Capital	CNY 12,100,000	CNY 13,500,000
2010-4-23	Shareholder (s) (% of Shareholding)	Guo Atuo 0.4646% Lin Junhui 0.3703% Zhen Huawei 8.7408% Zhao Shuqiu 0.4646% Luo Meiying 0.4646% Chen Jirong 0.4646% Chen Hanchao 0.5590% Xiao Feng 10.3704% Du Lixia 4.0741% Liang Wanping 0.4646% Xu Wenfang 0.4646% Wu Zhijun 0.4646% Wei Qiang 71.7040% Zhang Hui 0.4646% Dai Jing 0.4646%	Xiao Feng 10.3704% Zhen Huawei 8.7408% Wei Qiang 71.7040% Du Lixia 9.1848%
2010-11-2	Shareholder (s) (% of Shareholding)	Xiao Feng 10.3704% Zhen Huawei 8.7408% Wei Qiang 71.7040% Du Lixia 9.1848%	Xiong Ronghui 4.0744% Xiao Feng 10.3704% Wei Qiang 64.6296% Zhen Huawei 8.7408% Du Lixia 9.1848% Zhang Wensong 3.0000%
2011-1-18	Shareholder (s) (% of Shareholding)	Xiong Ronghui 4.0744% Xiao Feng 10.3704% Wei Qiang 64.6296% Zhen Huawei 8.7408% Du Lixia 9.1848% Zhang Wensong 3.0000%	Xiong Ronghui 1.43% Zhang Wensong 1.05% Wei Qiang 22.62% Du Lixia 3.21% Xiao Feng 3.63% Alibaba (China) Network Technology Co., Ltd. 65.00% Zhen Huawei 3.06%
2011-1-18	Registered Capital	CNY 13,500,000	cny 21,782,977

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

Name of Shareholder (s)	% of Shareholding
Xiong Ronghui	1.43
Zhang Wensong	1.05
Wei Qiang	22.62
Du Lixia	3.21
Xiao Feng	3.63
Alibaba (China) Network Technology Co., Ltd.	65.00
Zhen Huawei	3.06

SC’s Chief Executives:-

Position	Name
Legal Representative and General Manager	Wei Qiang
Chairman	Wei Zhe
Directors	Ji Gang
	Xiao Feng
	Peng Yijie
Supervisor	Liu Zheng

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Xiong Ronghui 1.43

Zhang Wensong 1.05

Wei Qiang 22.62

Du Lixia 3.21

Xiao Feng 3.63

Alibaba (China) Network Technology Co., Ltd. 65.00

Zhen Huawei 3.06

Alibaba (China) Network Technology Co., Ltd.:

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

Date of Registration : September 9, 1999

Registration No. : 330100400015575

Chief Executive : Ma Yun (Legal Representative)

Registered Capital : USD 158,900,000

MANAGEMENT

Wei Qiang, Legal Representative and General Manager

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

Ø Gender: M

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as legal representative and general manager

Wei Zhe, Chairman

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

Ø Gender: M

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as chairman

Directors

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

Ji Gang

Xiao Feng

Peng Yijie

Supervisor

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

Liu Zheng

BUSINESS OPERATION

SC’s registered business scope includes domestic commerce; supplying and selling of commodities, economic information consultation, international trade, online commodity services, international freight forwarding business, marine insurance, motor vehicle insurance, cargo insurance.

SC is mainly engaged in providing trade service, including customs, tax, foreign exchange, finance, logistics and etc.

In November, 2011, SC joined ALIBABA and assisted it providing one-stop service from “find foreign trade enterprises” to “do business with foreign trade enterprises” and making strategic adjustment from “meet at ALIBABA” to “work at ALIBABA”, which enable ALIBABA to offer comprehensive services for a wide range of small and medium-sized enterprises as well as individuals.

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

Staff & Office:

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

SC is known to have approx. 160 staff at present.

SC rents an area as its operating office of approx. 2000 sq. meters at the heading address.

RELATED COMPANY

u Jiangsu 1-Touch Enterprise Service Co., Ltd.

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

Incorporation Date : Jul. 13, 2010

Registration No. : 320592000047971

Legal Form : Limited Liabilities Company

Chief Executive : Mr. Zhang Wensong (Chairman)

Registered Capital : CNY 10,000,000

In August, 2010, Jiangsu 1-Touch Enterprise Service Co., Ltd was founded in Zhangjiagang Free Trade Zone as a subsidiary of SC, and it is also the only enterprise in China that cooperates with the government to provide import and export BPO service for small and medium-sized enterprises.

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:

Bank of China

AC#4000029119200031572

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010
Cash	2,240	7,680
Accounts receivable	2,760	15,960
Advances to suppliers	0	0
Other receivable	160	620
Inventory	10,570	27,560
Non-current assets within one year	0	0
Other current assets	0	20
	------------------	------------------
Current assets	15,730	51,840
Fixed assets	150	220
Construction in progress	0	0
Intangible assets	0	0
Long-term prepaid expenses	0	0
Deferred income tax assets	0	0
Other non-current assets	130	2,070
	------------------	------------------
Total assets	16,010	54,130
	=============	=============
Short-term loans	4,660	16,880
Notes payable	0	0
Accounts payable	910	30,920
Taxes payable	-14,360	-35,350
Advances from clients	11,690	32,970
Other payable	0	620
Other current liabilities	10	20
	------------------	------------------
Current liabilities	2,910	46,060
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	2,910	46,060
Equities	13,100	8,070
	------------------	------------------
Total liabilities & equities	16,010	54,130
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2010
Revenue	549,690
Cost of sales	540,970
Sales expense	9,730
Management expense	10,960
Finance expense	-1,290
Profit before tax	-4,400
Less: profit tax	620
Profits	-5,020

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Current ratio	5.41	1.13
*Quick ratio	1.77	0.53
*Liabilities to assets	0.18	0.85
*Net profit margin (%)	--	-0.91
*Return on total assets (%)	--	-9.27
*Inventory / Revenue ×365	--	19 days
*Accounts receivable/ Revenue ×365	--	11 days
* Revenue/Total assets	--	10.15
* Cost of sales / Revenue	--	0.98

FINANCIAL COMMENTS

PROFITABILITY: FAIR

l The revenue of SC appears fairly good in its line in 2010.

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

l SC’s return on total assets is poor in 2010.

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

LIQUIDITY: AVERAGE

l The current ratio of SC is maintained in a fairly good level in 2009, normal in 2010.

l SC’s quick ratio is maintained in a fairly good level in 2009, fair in 2010.

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

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

l SC’s short-term loan is in an average level.

l SC’s revenue is in a fairly good level, comparing with the size of its total assets.

LEVERAGE: FAIR

l The debt ratio of SC is fairly high in 2010.

l The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Fair.

CONCLUSIONS

SC is considered medium-sized in its line with fair financial conditions. But taking into SC’s good background, a credit line up to USD 50,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.13
UK Pound	1	Rs.72.05
Euro	1	Rs.63.33

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.