MIRA INFORM REPORT

Report Date :

22.11.2011

IDENTIFICATION DETAILS

Name :	THE BANK OF EAST ASIA (CHINA) LIMITED
Registered Office :	Room 2501, 25/F, Bea Financial Tower, No. 66 Hua Yuan Shi Qiao Road, Pudong New District, Shanghai, 200120 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	29.03.2007
Com. Reg. No.:	310000400507926
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Subject is engaged in saving, credit, balance and discounting business for the CNY currency; exchange, tourist check and credit card business

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 20,000,000
Status :	Good
Payment Behaviour :	Regular
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 BANK OF EAST ASIA (CHINA) LIMITED

ROOM 2501, 25/F, BEA FINANciaL TOWER, NO. 66 HUA YUAN SHI QIAO ROAD, PUDONG NEW DISTRICT, SHANGHAI, 200120 PR CHINA

TEL: 86 (0) 21-38663866 FAX: 86 (0) 21-38663966

EXECUTIVE SUMMARY

INCORPORATION DATE : MAR. 29, 2007

REGISTRATION NO. : 310000400507926

REGISTERED LEGAL FORM : Wholly foreign-owned enterprise

CHIEF EXECUTIVE : MR. David Li Kwok Po (CHAIRMAN)

STAFF STRENGTH : 3,500 (INCLUDING BRANCHES)

REGISTERED CAPITAL : CNY 8,000,000,000

BUSINESS LINE : FINANCIAL SERVICE

TURNOVER : CNY 3,366,277,000 (AS OF dec. 31, 2010)

EQUITIES : CNY 12,026,928,000 (AS OF dec. 31, 2010)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 20,000,000

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : strong

OPERATIONAL TREND : steady

GENERAL REPUTATION : well known

EXCHANGE RATE : CNY 6.35= USD 1

Adopted abbreviations

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

RMB - China Ren Min Bi Yuan

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 Mar. 29, 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 operating all foreign exchange business and RMB business within the following scope: recruiting public deposits; crediting short-term, middle-term and long-term credit; bill discounting; consignment-in of government bond, financial bond, and other foreign currency securities (excluding stock); providing credit services and guarantee; domestic and overseas settlements; acting as an agency for exchange transactions; insurance agent; interbank exchange borrowing; bank card business; providing safe deposit box service; providing credit research and consulting services; other business authorized by China Banking Regulatory Commission (with permit if needed).

SC is mainly engaged in saving, credit, balance and discounting business for the CNY currency; exchange, tourist check and credit card business; acting as an agency for the receive & payment and wealth safekeeping business; economic guarantee and credit witness business; economic consulting service; the business of saving, remittance, loan and guarantee for the foreign exchange, etc.

Mr. David Li
Kwok Po is legal representative and chairman of SC at present.

SC is known to have approx. 3,500 employees at present, including the ones in its branches.

SC is currently operating at the above stated address, and this address houses its head office in the commercial zone of Shanghai. The detailed information of the area is unspecified.

Excluding the heading given address, SC also houses 26/F, Room 2701, 28/F, 29/F, Room 3001, 31/F, 37/F, 38/F, 41/F, 42/F of BEA Financial Tower.

http://www.hkbea.com.cn/index.shtml The design is professional and the content is well organized. At present it is in both Chinese and English versions.

SC wins the “Best CSR Practices among Chinese Banks” award from China Business Network, wins the “2010 Most Honourable Foreign Bank in China” award from Money Weekly, wins the “Most Trustworthy Finance Brand in 2010” and “Best CSR Performance in 2010” awards at the 2010 SOHU Network Financing Festival, etc. SC’s Global Access Cyberbanking wins the “2010 Shanghai Financial Innovation Award” from the Shanghai Municipal People’s Government.

No significant changes were found during our checks with the local Administration for Industry and Commerce.

MAIN SHAREHOLDERS:

Name % of Shareholding

The Bank of East Asia, Limited (Hong Kong) 100

Incorporated in Hong Kong in 1918, The Bank of East Asia ("BEA") is dedicated to providing comprehensive commercial and retail banking services to its customers in Hong Kong, Mainland China, and other major markets around the world.

BEA is the largest independent local bank in Hong Kong, with total consolidated assets of HK$598.9 billion (US$77.0 billion) as of 30th June, 2011. The Bank is listed on The Stock Exchange of Hong Kong and is one of the constituent stocks of the Hang Seng Index. BEA also operates one of the largest networks of any bank in Hong Kong, with 88 branches, 62 Supreme Gold Centres and 6 i-Financial Centres throughout the city.

CR No.: 0000255

Incorporation date: Nov. 14, 1918

Legal form: Listed Company

Stock code: 00023.HK

Status: Live

Website: http://www.hkbea.com/hk/index_tc.htm

Tel: (852) 2211 1333

l Legal representative and Chairman:

Mr. David Li
Kwok Po, born in 1939 with Doctor’s degree. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as chairman and legal representative;

Also working in The Bank of East Asia, Limited (Hong Kong) as chairman and chief executive, etc.

SC is mainly engaged in saving, credit, balance and discounting business for the CNY currency; exchange, tourist check and credit card business; acting as an agency for the receive & payment and wealth safekeeping business; economic guarantee and credit witness business; economic consulting service; the business of saving, remittance, loan and guarantee for the foreign exchange, etc.

RMB currency business: recruit RMB deposits, crediting short-term, middle-term and long-term credit; balance, bill discounting, outstanding bank debenture, acting as an agency for cash, debenture bond and dealing debenture bond; borrowing money among banks, offering credit card business; acting as an agency for collection and payment currency and insurance business, offering coffer services. Foreign exchange business: foreign exchange deposits, foreign exchange credit, foreign exchange remit, exchange of foreign money, international balance, interbank foreign exchange borrowing, accept and discount foreign exchange bill, foreign exchange loan, foreign exchange assure, settlement of exchange, foreign exchange value securities business and as an agent of it, excluding shares; exchange transactions; issuing foreign exchange credit card, acting as an agent for issuing and paying of foreign credit card; credit investigate, inquiry and witness, authorized procuration service and other businesses authorized by the People’s Bank of China.

Etc.

SC is known to have the following branches:

· The Bank of East Asia (China) Limited Shanghai Branch

· The Bank of East Asia (China) Limited Shanghai Changning Sub-branch

· The Bank of East Asia (China) Limited Shanghai Dongfang Road Sub-branch

· The Bank of East Asia (China) Limited Shanghai Gubei Sub-branch

· The Bank of East Asia (China) Limited Beijing Branch

· The Bank of East Asia (China) Limited Guangzhou Branch

· The Bank of East Asia (China) Limited Shenzhen Branch

· The Bank of East Asia (China) Limited Chongqing Branch

· The Bank of East Asia (China) Limited Hangzhou Branch

· The Bank of East Asia (China) Limited Xiamen Branch

Etc.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2009	As of Dec. 31, 2010
Capital:
Cash and balances with central banks	13,516,184	20,274,468
Due from banks and other financial institutions	4,359,237	15,428,130
Lending to banks and other financial institutions	3,427,273	6,205,611
Derivative financial assets	111,322	466,406
Interest receivable	385,274	706,352
Loans and Advances to customers	84,646,869	91,345,650
Trading financial assets	1,953,690	947,043
Financial assets available-for-sale	8,001,747	12,944,165
Investment real estate	7,789	7,997
Fixed assets	1,813,766	4,090,991
Construction in progress	2,204,105	151,860
Intangible assets	40,821	41,260
Deferred income tax assets	0	73,247
Other assets	527,472	345,739
	------------------	------------------
Total assets	120,995,549	153,028,919
	=============	=============
Liabilities
Due to other banks and financial institutions	6,309,053	1,742,144
Loans from other banks	12,995,916	14,887,762
Derivative financial liabilities	96,114	510,384
Due to customers	84,089,824	117,884,870
Financial assets sold for repurchase	582,000	0
Salaries and welfare payables	139,582	227,636
Tax payable	169,536	239,641
Interest payable	602,261	980,233
Bond payable	3,979,411	3,992,616
Deferred income tax liabilities	87,676	0
Other liabilities	776,705	536,705
	------------------	------------------
Total liabilities	109,828,078	141,001,991
	=============	=============
Equity
Total equity	11,167,471	12,026,928
	------------------	------------------
Total liabilities & owner’s equities	120,995,549	153,028,919
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2009	As of Dec. 31, 2010
Net interest income	2,556,896	2,940,838
Net charges and commissions income	300,406	453,819
Investment income	78,259	-51,357
Loss from fair value change	-60,197	-57,808
Exchange net profit or loss	27,159	60,331
Income from other operations	9,724	20,454
Operating income	2,912,247	3,366,277
	=============	=============
Taxes and additional of main operation	235,110	267,569
Operation and administrative expense	1,394,811	1,790,533
Asset impairment loss	131,138	29,412
Cost from other operations	1,830	702
Operating expenses	1,762,889	2,088,216
	=============	=============
Operating profit	1,149,358	1,278,061
Non-operating income	48,697	34,897
Non-operating expense	1,451	3,867
Profit before tax	1,196,604	1,309,091
Less: profit tax	298,574	305,312
Profits	898,030	1,003,779

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010
*Liabilities to assets	0.91	0.92
*Net profit margin (%)	30.84	29.82
*Return on total assets (%)	0.74	0.66
*Turnover/Total assets	0.02	0.02

PROFITABILITY: GOOD

l The turnover of SC appears good in its line.

l SC’s net profit margin appears good.

l SC’s return on total assets appears average.

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

LEVERAGE: AVERAGE

l The debt ratio of SC is high.

l The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Strong.

SC is well-known in its line with strong financial conditions. In view of its favorable background and market conditions, the given credit amount would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.72
UK Pound	1	Rs.81.42
Euro	1	Rs.68.89

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.