MIRA INFORM REPORT

Report Date :

15.02.2012

IDENTIFICATION DETAILS

Name :	QINGDAO JINJING CO., LTD.

Registered Office :	No. 201 Jiangshan Bei Road Qingdao Economic & Technical Development Zone Shandong Province 266500 Pr

Country :	China

Financials (as on) :	31.12.2011

Date of Incorporation :	02.02.1999

Com. Reg. No.:	370200018008171

Legal Form :	Shares Limited Company

Line of Business :	Manufacturing and selling float sheet glass, rolled glass, industrial glass, deep processing of glass, glassware, glass furniture; international trade.

No. of Employees :	1,300

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 80,000
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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name and address

QINGDAO JINJING CO., LTD.

NO. 201 JIANGSHAN BEI ROAD

QINGDAO ECONOMIC & TECHNICAL DEVELOPMENT ZONE

SHANDONG PROVINCE 266500 PR CHINA

TEL: 86 (0) 532-86909202/86909203

FAX: 86 (0) 532-86907443

EXECUTIVE SUMMARY

Date of Registration : february 2, 1999

REGISTRATION NO. : 370200018008171

LEGAL FORM : Shares limited company

CHIEF EXECUTIVE : zhang ziqin (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 10,800,000

staff : 1,300

BUSINESS CATEGORY : manufacturing

Revenue : CNY 507,830,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY 13,840,000 (AS OF DEC. 31, 2011)

WEBSITE : www.jinjing.com.cn

E-MAIL : glass@jinjing.com.cn

PAYMENT : AVERAGE

Recommended Credit Limit : UP TO USD 80,000 (PERIODICAL REVIEW)

MARKET CONDITION : average

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.30 = 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 shares limited company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 370200018008171 on February 2, 1999.

SC’s Organization Code Certificate No.: 16387181-2

SC’s registered capital: cny 10,800,000

SC’s paid-in capital: cny 10,800,000

Registration Change Record:

Date	Change of Contents	Before the change	After the change
--	Legal Representative	Liu Tongyou	Zhang Ziqin

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

Name of Shareholder (s)	% of Shareholding
Qingdao Economic & Technical Development Zone Jinxing Glass Technology Development Co., Ltd.	37.00
Employee Shareholders Association of Qingdao Jinjing Co., Ltd.	1.11
Zhang Jingrong	10.00
Zhang Zisen	2.00
Liu Hongmei	4.56
Zhang Ziqin	45.33

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Zhang Ziqin

RECENT DEVELOPMENT

SC has got the certificate ISO9001.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Qingdao Economic & Technical Development Zone Jinxing Glass

Technology Development Co., Ltd. 37.00

Employee Shareholders Association of Qingdao Jinjing Co., Ltd. 1.11

Zhang Jingrong 10.00

Zhang Zisen 2.00

Liu Hongmei 4.56

Zhang Ziqin 45.33

Qingdao Economic & Technical Development Zone Jinxing Glass

Technology Development Co., Ltd.

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

Date of Registration: September 3, 1999

Registration No.: 370211228006511

Legal Form: Limited Liabilities Company

Chief Executive: Zhang Ziqin

Registered Capital: CNY 500,000

MANAGEMENT

Zhang Ziqin , Legal Representative, Chairman and General Manager

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

Ø Gender: F

Ø Qualification: University

Ø Working experience (s):

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

Also working in Qingdao Economic & Technical Development Zone Jinxing Glass Technology Development Co., Ltd. as legal representative and chairman

BUSINESS OPERATION

SC’s registered business scope includes manufacturing and selling float sheet glass, rolled glass, industrial glass, deep processing of glass, glassware, glass furniture; international trade.

SC is mainly engaged in manufacturing and selling glass products.

Brand: Jinjing

SC’s products mainly include:

Patterned Glass

Wired Glass

High-speed locomotive glass

Etc.

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

The buying terms of SC include 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.

*Major Customers:

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

Shandong Dezhou Department Store (Group) Co., Ltd.

Jinan Central Hospital Affiliated to Shandong University

Staff & Office:

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

SC is known to have approx. 1,300 staff at present.

SC owns an area as its operating office & factory of approx. 200,000 sq. meters at the heading address.

RELATED COMPANY

SC is not known to have any subsidiary at present.

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 Qingdao Economic & Technical Development Zone Sub-branch

AC#: 15105908091001

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011
Cash	552,150	449,310
Accounts receivable	33,740	59,740
Advances to suppliers	0	0
Other receivable	9,160	22,580
Inventory	44,230	115,520
Non-current assets within one year	0	0
Other current assets	116,360	7,270
	------------------	------------------
Current assets	755,640	654,420
Fixed assets	152,230	291,940
Long-term prepaid expenses	0	0
Deferred income tax assets	0	0
Other non-current assets	65,710	73,060
	------------------	------------------
Total assets	973,580	1,019,420
	=============	=============
Short-term loans	475,210	506,820
Notes payable	192,200	205,910
Accounts payable	176,030	167,290
Wages payable	0	0
Advances from clients	0	0
Other payable	32,160	30,560
Other current liabilities	0	0
	------------------	------------------
Current liabilities	875,600	910,580
Non-current liabilities	85,000	95,000
	------------------	------------------
Total liabilities	960,600	1,005,580
Equities	12,980	13,840
	------------------	------------------
Total liabilities & equities	973,580	1,019,420
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2011
Revenue	507,830
Cost of sales	415,490
Sales expense	21,570
Management expense	35,940
Finance expense	30,110
Profit before tax	-60
Less: profit tax	0
Profits	-60

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2011
*Current ratio	0.86	0.72
*Quick ratio	0.81	0.59
*Liabilities to assets	0.99	0.99
*Net profit margin (%)	--	-0.01
*Return on total assets (%)	--	-0.01
*Inventory / Revenue ×365	--	84 days
*Accounts receivable/ Revenue ×365	--	43 days
* Revenue/Total assets	--	0.50
* Cost of sales / Revenue	--	0.82

FINANCIAL COMMENTS

PROFITABILITY: FAIR

l The revenue of SC appears fairly good in its line in 2011.

l SC’s net profit margin is fair in 2011.

l SC’s return on total assets is fair in 2011.

l SC’s cost of sales is average, comparing with its revenue.

LIQUIDITY: FAIR

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

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

l The inventory of SC appears large.

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

l The short-term loans of SC appear large.

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

LEVERAGE: FAIR

l The debt ratio of SC is high in both years.

l The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Fair.

CONCLUSIONS

SC is considered large-sized in its line with fair financial conditions. The large amount of inventory and short-term loans may be a threat to SC’s financial condition. A credit line up to USD 80,000 is recommended upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.33
UK Pound	1	Rs.77.41
Euro	1	Rs.64.84

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.