MIRA INFORM REPORT

Report Date :

25.10.2011

IDENTIFICATION DETAILS

Name :	EMOBILE COMM (SHANGHAI) INC.
Registered Office :	No. 3938, Huqingping Road, Qingpu District, Shanghai, 201703 Pr
Country :	China
Financials (as on) :	31.12.2010
Date of Incorporation :	28.03.1994
Com. Reg. No.:	310000400078380
Legal Form :	Wholly Foreign-Owned Enterprise
LINE OF BUSINESS :	MANUFACTURING & SELLING COMMUNICATION EQUIPMENTS, COMPUTERS AND OTHER ELECTRONIC PRODUCTS.

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 100,000
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, 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 and address

emobile comm (shanghai) inc.

no. 3938, huqingping road, qingpu district, shanghai, 201703 PR CHINA

TEL: 86 (0) 21-59750099 FAX: 86 (0) 21- 59750077

EXECUTIVE SUMMARY

INCORPORATION DATE : MARCH 28, 1994

REGISTRATION NO. : 310000400078380

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MS. WANG CUILING (CHAIRMAN)

STAFF STRENGTH : 500

REGISTERED CAPITAL : USD 29,300,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 403,638,000 (AS OF DEC. 31, 2010)

EQUITIES : CNY 23,502,000 (AS OF DEC. 31, 2010)

PAYMENT : AVERAGE

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

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3735 = 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

Note: SC’s correct contact ways should be the heading ones, and SC’s employee released that the given tel. no. (021-51908136) and fax no. (021-51381782) does not belong to SC.

SC was registered as a Chinese-foreign contractual joint venture enterprise at local Administration for industry & commerce (AIC – the official body of issuing and renewing business license) on March 28, 1994 and has been under present legal form since 2011.

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 researching, developing, processing & manufacturing mobile parts & components, electronic & communication applications, relevant module plate, dial frequency applications, PDA, notebook computer, LCD monitors, routers, servers, motherboards, switches, mouse, drives, scanners, fax machine and other products, selling self-made products and providing products technical service; wholesaling, import & export, commission agent of the similar products and providing related supporting service.

SC is mainly engaged in manufacturing & selling communication equipments, computers and other electronic products.

Ms. Wang Cuiling has been legal representative and chairman of SC since 2010.

SC is known to have approx. 500 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 Shanghai. SC’s employee refused to release the detailed information of the premise.

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

Email: chunhua.xie@eglobalmfg.com ; hr@eglobalmfg.com

SC has passed ISO9001, TL9000, ISO14001, QC 080000.

Changes of its registered information:

Date of change	Item	Before the change	After the change
2000-5	Company name	Long Life Electronic Shanghai Co., Ltd.	Present one
	Legal representative	Xu Quanzhen	Zhang Pingzhao
	Registered capital	USD 7,000,000	USD 29,200,000
	Shareholding	(Hong Kong) Kingsman International Limited90% Shanghai Qingpu Zhaoxiang Industrial Corp. 10%	(Hong Kong) Kingsman International Limited100% Shanghai Qingpu Zhaoxiang Industrial Corp. (providing the land use right)
2004-4	Registered capital	USD 29,200,000	USD 19,300,000
2009-12	Shareholders	(Hong Kong) Kingsman International Limited100% Shanghai Qingpu Zhaoxiang Industrial Corp. (providing the land use right)	(Samoa) Rightway Holdings Limited 100% Shanghai Qingpu Zhaoxiang Industrial Corp. (providing the land use right)
2010-3	Legal representative	Zhang Pingzhao	Present one
2010-12	Shareholders	(Samoa) Rightway Holdings Limited 100% Shanghai Qingpu Zhaoxiang Industrial Corp. (providing the land use right)	Emobile (Hong Kong) Communication Technology Limited100% Shanghai Qingpu Zhaoxiang Industrial Corp. (providing the land use right)
2011-2	Registered Legal Form	Chinese-foreign contractual joint venture enterprise	Present one
	Shareholders (% of shareholding)	Emobile (Hong Kong) Communication Technology Limited鼎讯100% Shanghai Qingpu Zhaoxiang Industrial Corp. (providing the land use right
Unknown	Registered capital	USD 19,300,000	Present amount

Tax Registration Certificate No.: 310229607289592

Organization Code: 607289592

MAIN SHAREHOLDERS:

Name % of Shareholding

Emobile (Hongkong) Communication Technology Limited 100

Registration no.: 1533256

Legal form: private

l Legal Representative and Chairman:

Ms. Wang Cuiling is currently responsible for the overall management of SC.

Working Experience(s):

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

l General Manager:

Mr. Zhu Bo is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager.

SC is mainly engaged in manufacturing & selling communication equipments, computers and other electronic products.

SC’s products mainly include: mobile parts & components, electronic & communication applications, relevant module plate, dial frequency applications, PDA, notebook computer, LCD monitors, routers, servers, motherboards, switches, mouse, drives, scanners, fax machine, etc.

SC’s present capacity: 300K/Month based on clamshell handset PCB with 300 components.

SC sources its materials 80% from domestic market, and 20% from overseas market. SC sells 4% of its products in domestic market, and 96% to overseas market.

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

Note: SC refused to release its major clients and suppliers.

The information on SC’s subsidiaries is not available.

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 Shanghai Qingpu Zhaoxiang Sub-branch

AC#037797-08015008500

Relationship: Normal.

Note: SC’s management declined to release whether it has account in Bank of Communications Shanghai Municipal Branch.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2010	As of Dec. 31, 2009
Cash & bank	8,206	1,613
Inventory	16,260	205
Bills receivable	5,127	0
Accounts receivable	46,645	4,668
Other Accounts receivable	13,943	112
Advances to suppliers	4,405	384
To be apportioned expense	0	0
Other current assets	0	9
	------------------	------------------
Current assets	94,586	6,991
Fixed assets net value	45,624	34,770
Projects under construction	761	0
Long-term investment	5,000	0
Intangible assets	338	10
Other assets	489	0
	------------------	------------------
Total assets	146,798	41,771
	=============	=============
Short loans	15,828	37,500
Accounts payable	100,337	7,552
Advance from customers	3,727	1,835
Accrued payroll	1,802	882
Other Accounts payable	1,122	847
Notes payable	0	0
Taxes payable	-420	1,093
Other current liabilities	900	935
	------------------	------------------
Current liabilities	123,296	50,644
Long term liabilities	0	0
Other liabilities	0	0
	------------------	------------------
Total liabilities	123,296	50,644
Equities	23,502	-8,873
	------------------	------------------
Total liabilities & equities	146,798	41,771
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2010	As of Dec. 31, 2009
Turnover	403,638	168,797
Cost of goods sold	368,459	172,308
Taxes and additional of main operation	395	0
Sales expense	203	1,007
Management expense	5,851	17,872
Finance expense	1,593	1,589
Non-operating income	6,764	2
Non-operating expense	196	1
Profit before tax	33,705	-23,978
Less: profit tax	0	0
Profits	33,705	-23,978

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2009
*Current ratio	0.77	0.14
*Quick ratio	0.64	0.13
*Liabilities to assets	0.84	1.21
*Net profit margin (%)	8.35	-14.21
*Return on total assets (%)	22.96	-57.40
*Inventory /Turnover ×365	15 days	1 day
*Accounts receivable/Turnover ×365	43 days	11 days
*Turnover/Total assets	2.75	4.04
* Cost of goods sold/Turnover	0.91	1.02

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good in its line, and it increased greatly in 2010.

l SC’s net profit margin remains in a fair level in 2009 and fairly good in 2010.

l SC’s return on total assets remains in a poor level in 2009 and good in 2010.

l SC’s cost of goods sold is fairly high in 2010, comparing with its turnover.

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a poor level in 2009 and fair in 2010.

l SC’s quick ratio is maintained in a poor level in 2009 and fair in 2010.

l The inventory of SC appears average in both years.

l The accounts receivable of SC appears average in 2009 but fairly large in 2010.

l SC’s short-term loan appears large in 2009 and average in 2010.

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

LEVERAGE: FAIR

l The debt ratio of SC is TOO HIGH in 2009 and high in 2010.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered medium-sized in its line with fairly stable financial conditions. The large amount of accounts receivable could be a threat to SC’s financial condition. 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.49.87
UK Pound	1	Rs.79.73
Euro	1	Rs.69.53

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.