MIRA INFORM REPORT

Report Date :

11.01.2012

IDENTIFICATION DETAILS

Name :	Guangxi Wonder Pharmaceuticals Co., Ltd.

Registered Office :	No. 152, Wuhua Avenue, Asean Economic Development Zone, Nanning, Guangxi Zhuang Autonomous Region, 530105 Pr

Country :	China

Financials (as on) :	31.12.2010

Date of Incorporation :	12.05.2005

Com. Reg. No.:	450000400002724

Legal Form :	Shares Limited Company

Line of Business :	Researching, manufacturing, marketing, customized synthesizing and contract manufacturing Corticosteroids and steroidal intermediates.

No. of Employees :	150

RATING & COMMENTS

MIRA’s Rating :

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

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

Guangxi Wonder Pharmaceuticals Co., Ltd.

no. 152, wuhua avenue, ASEAN economic development zone,

nanning, Guangxi Zhuang Autonomous Region, 530105 PR CHINA

TEL: 86 (0) 771- 6315818 / 6304888 FAX: 86 (0) 771-6301988 / 6315828

EXECUTIVE SUMMARY

INCORPORATION DATE : may 12, 2005

REGISTRATION NO. : 450000400002724

REGISTERED LEGAL FORM : SHARES LIMITED COMPANY

CHIEF EXECUTIVE : MR. Wang yuanqiu (CHAIRMAN)

STAFF STRENGTH : 150

REGISTERED CAPITAL : CNY 60,000,000

BUSINESS LINE : MANUFACTURING

TURNOVER : CNY 57,433,000 (AS OF DEC. 31, 2010)

EQUITIES : N/A

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : moderate amount

MARKET CONDITION : average

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3621 = 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 Shares Limited Company at Guangxi Zhuang Autonomous Region Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on May 12, 2005.

Company Status: Shares limited co.

This form of business in PR China is defined as a legal person. Its registered capital is divided into shares of equal par value and the co. raises capital by issuing share certificates by promotion or by public offer. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to the extent of its total assets. The co has independent property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as follows:

The establishment of the co. requires at least two promoters and no more than 200, half of whom shall be domiciled in China.. Natural person are allowed to serve as promoters.

The minimum registered capital of a co. is CNY 5M. while that of the co. with foreign investment is CNY 5M. The total capital of a co. which propose to apply for publicly listed must be no less than CNY 30M.

The board of directors must consist of five to nineteen directors.

If the co. raises capital by public offer, the promoters must not subscribe less than 35% of the total shares. the promoters’ shares are restricted to transfer- within one year of the offer.

A state-owned enterprise that is restructured into a shares limited co. must comply with the conditions & requirements specified under the law & administrative rule.

SC’s registered business scope includes manufacturing and selling API of dexamethasone and betamethasone and steroid hormone, intermediate for pharmaceutical (with permit if needed).

SC is mainly engaged in manufacturing and selling active pharmaceutical ingredients.

Mr. Wang Yuanqiu is chairman of SC since 2005.

SC is known to have approx. 150 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the economic development zone of Nanning. Our checks reveal that SC owns the total premise about 200,000 square meters.

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

Email: info@gxwonder.com; gxwonder@gmail.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
2006-9-30	Registered capital	CNY 30,000,000	CNY 43,500,000
2011-3	Registered capital	CNY 43,500,000	CNY 60,000,000
2011-3	Shareholders	Dongfang Sisal Group Co., Ltd. of Guangdong Province Haijielian (Nanning) Bio-pharmaceutical Industry Co., Ltd. Wang Yuanqiu (Canadian) Wang Zeyin (Canadian) Wang Zezhen (Canadian)	Present ones
Unspecified	Registration No.	003597	The present one

SC is also known as Guangxi Wonder Pharmaceuticals Co., Ltd.

MAIN SHAREHOLDERS:

Name % of Shareholding

Wang Yuanqiu (Canadian) 25.38

Nanning Sheng Rong Asset Management Co., Ltd. (in Chinese Pinyin) 15.00

Dongfang Sisal Group Co., Ltd. of Guangdong Province 14.50

Wang Zeyin (Canadian) 14.50

Wang Zezhen (Canadian) 12.50

Nanning Yu Rong Asset Management Co., Ltd. (in Chinese Pinyin) 11.50

Haijielian (Nanning) Bio-pharmaceutical Industry Co., Ltd. 3.63

Nanning Xin De Asset Management Co., Ltd. (in Chinese Pinyin) 3.00

Dongfang Sisal Group Co., Ltd. of Guangdong Province

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

Dongfang Sisal Group Co., Ltd. of Guangdong Province is a big state-owned enterprise, carrying out comprehensive management policy of an integration of agriculture-industry-trade and one continuous line of production-supply-sales.

Incorporation date: Sep. 17, 1997

Registration No.: 440800000028733

Registered capital: CNY 50,000,000

Legal representative: Zhou Yizhong

Legal form: Limited Liabilities Company

Web: http://www.dongfang-sisal.com/

Email: dfjm@pub.zhanjiang.gd.cn

Tel: 0759-2628835/2628893/2628892

Fax: 0759-2628870

Add: No. 24, Middle Renmin Avenue, Economic and Technology Development Zone

Haijielian (Nanning) Bio-pharmaceutical Industry Co., Ltd.

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

Incorporation date: June 3, 2002

Registration no.: 450100400001654

Registered capital: CNY 500,000

Legal representative: Wang Yuanqiu

Legal form: Wholly foreign-owned enterprise

Tel: 0771-6304688/6304666

Add: Industrial Road, Dongmen Economic Zone, Nanning, Guangxi Zhuang Autonomous Region.

l Chairman & General Manager:

Mr. Wang Yuanqiu , ID# 350127520921263, Canadian, born in 1952, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2005 to present Working in SC as chairman and general manager

Also working in Haijielian (Nanning) Bio-pharmaceutical Industry Co., Ltd. as legal representative

SC is specialized in researching, manufacturing, marketing, customized synthesizing and contract manufacturing Corticosteroids and steroidal intermediates.

SC’s products mainly include Dexamethasone, Betamethasone, Epiandrosterone, Dexamethasone Acetate, and so on.

SC sources its materials 100% from domestic market. SC sells 40% of its products in domestic market, and 60% to overseas market.

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

Note: SC’s management declined to release its customer and supplier details.

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 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.

At local AIC, the bank information of SC is not available.

Unit: CNY’000

	as of Dec. 31, 2009	as of Dec. 31, 2010
Long-term investment	0	72,606
Long-term liabilities	45,000	65,500
Total liabilities	-46,732	/
Shareholders equities	56,709	/
Total Assets	9,977	143,981

Turnover	31,349	57,433
Profit before tax	1,134	2,085
Profit tax	0	219
Net profit	1,134	1,866

Note: SC’s detailed financial reports for Yr2010 and Yr2009 were not found in local AIC.

Important Ratios

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

	as of Dec. 31, 2009	as of Dec. 31, 2010
*Liabilities to assets	-4.68	/
*Net profit margin (%)	3.62	3.25
*Return on total assets (%)	11.37	1.30
*Turnover/Total assets	3.14	0.40

PROFITABILITY: AVERAGE

· The turnover of SC appears average in its line in both two years.

SC’s net profit margin is average in both two years.

SC’s return on total assets is good in 2009 but average in 2010.

SC’s turnover is in a fairly good level in 2009 but poor in 2010, comparing with the size of its total assets.

Overall financial condition of the SC: Fairly stable.

SC is considered medium-sized in its line with fairly stable financial conditions. Credit up to moderate amount may be considered.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.23
UK Pound	1	Rs.80.84
Euro	1	Rs.66.79

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.