MIRA INFORM REPORT

Report Date :

26.04.2012

IDENTIFICATION DETAILS

Name :	HEBEI YUXING BIO-ENGINEERING CO., LTD.

Registered Office :	High & New Technology Development Area, Ningjin County, Xingtai, Hebei Province, 051630 Pr

Country :	China

Financials (as on) :	31.12.2009

Date of Incorporation :	03.12.2003

Com. Reg. No.:	130500400000500

Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise

Line of Business :	Manufacturing and selling pharmaceutical products

No. of Employees :	310

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	usd 2,000,000

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 – 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

Name and address

HEBEI YUXING BIO-ENGINEERING CO., LTD.

HIGH & NEW TECHNOLOGY DEVELOPMENT AREA, NINGJIN COUNTY, XINGTAI, HEBEI PROVINCE, 051630 PR CHINA

TEL: 86 (0) 319-5515199 FAX: 86 (0) 319-5801619

EXECUTIVE SUMMARY

INCORPORATION DATE : DEC. 3, 2003

REGISTRATION NO. : 130500400000500

REGISTERED LEGAL FORM : Chinese-foreign equity joint venture enterprise

CHIEF EXECUTIVE : MS. LI XIUJUN (CHAIRMAN)

STAFF STRENGTH : 310

REGISTERED CAPITAL : CNY 100,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : cny 221,266,000 (AS OF DEC. 31, 2009)

EQUITIES : cny 231,711,000 (AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO usd 2,000,000

MARKET CONDITION : competitive

FINANCIAL CONDITION : fairly good

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.80 = 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 Ren Min Bi

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) on Dec. 3, 2003.

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 feed additives, raw materials (vitamin B12, methylcobalamin, and hydroxyl cobalamin); selling self-made commodities. (with permit if needed)

SC is mainly engaged in manufacturing and selling pharmaceutical products.

Ms. Li Xiujun is the legal representative and chairman of SC at present.

SC is known to have approx. 310 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the development zone of Xingtai. SC’s accountant refused to release the detailed information of the area.

http://www.hebyufeng.com The website belongs to “Heibei Yufeng Group Corporation”. It includes the information about SC and its related companies. The design is professional and the content is well organized. At present it is in Chinese and English versions.

Email: kugougao@sina.com

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2006-1-4	Registered capital	CNY 22,000,000	CNY 12,391,600
2006-7-3	Registered capital	CNY 12,391,600	Present amount

*To what extent is your company affected by the current Credit Crisis?

SC’s accountant refused to make any comments.

MAIN SHAREHOLDERS:

Name % of Shareholding

Xunjie (Hong Kong) Electronic Company (in Chinese Pinyin) 25

Hebei Guofu Agricultural Investment Group Co., Ltd. (in Chinese Pinyin) 24

Hebei Yufeng Starch & Glucose Group Co., Ltd. 51

Hebei Guofu Agricultural Investment Group Co., Ltd.

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

Add: 26/F Yanshan Hotel, No. 40 Yuhua West Road, Qiaoxi District, Shijiazhuang, Hebei Province

Tel: 86(0)311-87878125

Hebei Yufeng Starch & Glucose Group Co., Ltd.

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

Add: High & New Technology Development Area, Ningjin County, Xingtai, Hebei Province

Tel: 86(0)319-5808193

Fax: 86(0)319-5808192

E-mail: hbyf@hebyufeng.com

l Legal Representative and Chairman:

Ms. Li Xiujun , ID# 130528196809290066, born in 1968 with university education. She is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

l Directors:

Chen Minliang (Hong Kong citizen) # k865060(8)

Wang Yufeng ID# 132229670813067

Zhang Meihong ID# 510102681222844

Zhang Shuanbing ID# 140104590901131

Luan Bingfeng ID# 130103197410111519

Huang Shuilong ID# 350500195606180019

l Supervisors:

Li Jianlin ID# 110108196606176035

Bu Feng ID# 132229450610001

Liu Zengwei ID# 132229640217001

Lei Donghua ID# 132229600419001

SC is mainly engaged in manufacturing and selling pharmaceutical products.

SC’s products mainly include: cyanocobalamin, mecobalamin, hydroxocobalamin, vitamin B12 food additive, feed additive, etc.

SC sources its materials 50% from domestic market and 50% from the overseas markets. SC sells 35% of its products in domestic market and 65% to the overseas markets.

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.

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 refused to release any information of its suppliers and the trade reference was not available.

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.

SC’s accountant refused to disclose its detailed bank information.

Financial Summary

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

Unit: CNY’000	As of Dec. 31, 2008	As of Dec. 31, 2009
Total liabilities	51,870	158,964
Equities	309,692	231,711
	--------------	--------------
Total assets	361,562	390,675
	=========		=========
Turnover	224,570		221,266
Profit before tax	58,805		46,868
Less: profit tax	433		5,858
Profits	58,372		41,010

Note: we did not find SC’s detailed financial reports at local AIC.

Important Ratios

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

	As of Dec. 31, 2008	As of Dec. 31, 2009
*Liabilities to assets	0.14	0.41
*Net profit margin (%)	25.99	18.53
*Return on total assets (%)	16.14	10.50
*Turnover/Total assets	0.62	0.57

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good but it decreased slightly in 2009.

l SC’s net profit margin appears fairly good but it decreased in 2009.

l SC’s return on total assets is fairly good but it decreased in 2009.

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

LEVERAGE: FAIRLY GOOD

l The debt ratio of SC is low in 2008 and 2009.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly good.

SC is considered medium-sized in its line with fairly good financial conditions. A credit line up to USD 2,000,000 would appear to be within SC’s capacities.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.49
UK Pound	1	Rs.84.66
Euro	1	Rs.69.25

INFORMATION DETAILS

Report Prepared by :

MNL

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.

MIRA INFORM REPORT

Name and address

EXECUTIVE SUMMARY

Name % of Shareholding

Unit