MIRA INFORM REPORT

Report Date :

21.07.2012

IDENTIFICATION DETAILS

Name :	ZHANGZHOU HAOSHUN FOOD CO.,LTD
Registered Office :	Rm 304, Building 16, Huagang Cuiyuan, Xiangcheng Dist, Zhangzhou City, Fujian Province.
Country :	China
Date of Incorporation :	13.08.2004
Com. Reg. No.:	350600100012732
Legal Form :	Limited Liabilities Company
Line of Business :	Wholesale of prepackaged food;
No. of Employees :	20

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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

ZHANGZHOU HAOSHUN FOOD CO.,LTD

Currency in this report is Chinese Yuan unless otherwise stated.

Exchange Rate: 1 USD=6.37 Chinese Yuan

"--"in this report indicates "unavailable" due to insufficient information or "no comments"

ORDER INFORMATION

name	ZHANGHOU HAOSHUN FOOD CO LTD
address	NO. 304 # 16F HUAGANG CUIYAN,XIANGCHENG AREA ZHANGHOU FUJIAN
tel.	0086 138691268
fax	0086 596 2999929/2999926

Notes:

1. The address provided in the order is SC’s registered address and previous office address. Its present office address is as listed in the report.

2. The Fax No. (86 596 2999929) provided in the order isn’t a fax number, but SBE’s telephone number. The other Fax No. (86 596 2999926) provided in the order is correct.

3. The mobile phone (86 138691268) provided in the order isn’t complete. According to SC’s staff, the mobile phone should be 86 13806912689 and belongs to them.

4. The credit limit (USD 2,500,000.00) provided in the order is high. The recommended credit limit is as listed in the report.

EXECUTIVE SUMMARY

DATE OF establishment	Aug 13^th, 2004
Aic Registration No.	350600100012732
REGISTERED LEGAL FORM	limited liabilities company
REGISTERED CAPITAL	1,680,000.00
main BUSINESS	Sales of canned food.
tax no.	--
TURNOVER	--
net profit	--
total assets	--
net worth	--
employees	20
import and export permits	yes
credit rating	CR4
EXCHANGE RATE	1 Usd=6.37CNY (JULy.19^th, 2012)

Registered Address	RM 304, Building 16, Huagang Cuiyuan, Xiangcheng Dist, Zhangzhou City, Fujian Province.
Zip Code	363000
Business Address	RM 402, Building 13, Shangri-la dist, Nanchang Rd, Xiangcheng Dist, Zhangzhou City, Fujian Province.
Zip Code	363030
Telephone	86 596 2999826/2999929
Fax	86 596 2999926
Mobile	86 13806912689
SIC Code (China)	3940 manufacture of batteries

REGISTRATION

Name (English)	ZHANGZHOU HAOSHUN FOOD CO.,LTD
Date of Establishment	Aug 13^th, 2004
Registry	Administration Bureau of Industry and Commerce – Zhangzhou City
Legal Representative	Wang Xiao-ling (
AIC Registration Number	350600100012732
Previous Registration Number	3506002001339
Registered Legal Form	LIMITED LIABILITIES COMPANY
Registered Capital	1,680,000.00 CNY
Operating Duration	Aug 13^th, 2004 to Aug 12^th, 2024
Business Scope	Wholesale of prepackaged food; Import and export of goods. (with license for those needed)
Changes in Registration	N/A

Limited liabilities co.

This form of business in PR China is defined as a legal person. Its registered capital is contributed jointly by at least two shareholders and no more than fifty. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics of this form of co. are as follows:

Upon the establishment of the co., an investment certificate is issued to the each of shareholders.

The board of directors is comprised of three to thirteen members.

The minimum registered capital for a co. is listed as follows:

-manufacturing co. : RMB 500,000.00

-trading &wholesaling co. : RMB 500,000.00

-retailing co. : RMB 300,000.00

-consultancy & service co. : RMB 100,000.00

Shareholders may take their capital contributions in cash or by means of tangible assets or intangible assets such as industrial property and non-patented technology.

Cash contributed by all shareholders must account for at least 50% of the registered capital while contribution by intangible assets must not exceed 20% of the registered capital.

Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the other shareholders and to subscribe for the newly increased registered capital of the co.

REGISTRATION INFO: AVAILABLE

FINANCIAL REPORTS: AVAILABLE

FIELD INVESTIGATION

1. SC’s business income comes mainly from sales of vegetable cans, fruit cans, fish cans, meat cans, etc. Its products are mainly exported to overseas countries. SC’s sales business is developed both directly and indirectly to its end customers. Its clients are mainly overseas traders, wholesalers, etc. The industry of can products is an industry with fierce competition. There are a lot of similar enterprises in the local place as SC’s competitors. However, with long history, SC has accumulated certain amount of customers and enjoys certain popularity in domestic and international market. Generally speaking, SC’s competitiveness is average in the local industry.

2. Zhangzhou City, SC’s location, is in the South of Fujian Province. There were 15 manufacture industries (Textiles, Machinery, Electronics, Food, Packaging, Building materials, cans, pharmaceuticals, etc) in Zhangzhou City with over 1000 kinds of products. The total production value of Zhangzhou City in 2009 was 111.32 billion CNY, increasing 13.3% year/year; the total financial revenue was 11.38 billion CNY, increasing 12% year/year. As an individual invested enterprise dealing with sales of ordinary can food, SC shares no favorable policies provided by the local government.

SHAREHOLDERS AND SHARES

As indicated in the following table:

Shareholder	Capital Subscribed	Percentage
Wang Xiao-ling	1,344,000.00	80%
Wang Li-ling	336,000.00	20%
Total	1,680,000.00	100%

Shareholder	Way of Investment	Paid-up Percentage
Wang Xiao-ling	Capital	100%
Wang Li-ling	Capital	100%

Background of major shareholder

Name	Wang Xiaoling
Gender	Female
Title	Executive director
Date of birth	Aug 6^th, 1982
Name	Wang Liling
Gender	Female
Title	Supervisor
Date of birth	Feb 6^th, 1984

AFFILIATE(S)

No affiliates of subject company is found after checking.

MANAGEMENT

Name	Wang Xiaoling
Gender	Female
Title	Executive director
Date of birth	Aug 6^th, 1982
Education	--
Working experience	Over 5 years’ working experience and over 5 years’ management experience.
Name	Wang Li-ling
Gender	Female
Title	Supervisor
Date of birth	Feb 6^th, 1984
Working experience	Over 5 years’ working experience and over 5 years’ management experience.

NUMBER OF EMPLOYEES

Employees: 20

Management Staff: 8

Recent recruitment: Yes

Job-hunting websites	Job title	Number
http://www.zzrc.net/zp/zw_51198.html	Merchandiser	3

BANKERS INFORMATION

Bank name	Agricultural Bank of China – Zhangzhou Branch
Account No. (CNY)	--
Tel.	86 596 2962630
Comment	The investigated person confirmed SC opened an account in the bank, but refused to disclose any account information due to bank secrecy.

OFFICE FACILITIES

Geographic Location	RM 402, Building 13, Shangri-la Dist, Nanchang Rd, Xiangcheng Dist, Zhangzhou City, Fujian Province.
Area	150 square meters
Environment	Residential Area.
Traffic condition	Convenient (closed to Danlu Rd, Yunguang South Rd, Jiulong Avenue, Shengli East Rd, etc.).
Purpose	Office.
Property Ownership	Rented
Previous address	RM 304, Building 16, Huagang Cuiyuan, Xiangcheng Dist, Zhangzhou City, Fujian Province.

WEBSITE

Website	http://www.haoshunfoods.com/
e-mail	chengshang@haoshunfood.com.cn
Operation status	Operational
Copyright	Copyright reserved by SC.
Language	Chinese and English.

TRADEMARKS

Total trademark	5 (only the latest 3 are listed)
Registration No.	9847898
Registration date	Aug 15^th, 2011
Image
Registration No.	9847922
Registration date	Aug 15^th, 2011
Image
Registration No.	9847954
Registration date	Aug 15^th, 2011
Image

PATENTS

After checking with the State Intellectual Office, no patents of SC were found.

MAIN PRODUCTS & SERVICES

Main business	Sales of canned products.
Products and services	SC mainly deals with sales of canned products including vegetable cans, fruit cans, mushroom cans, fish, meat cans, etc. Its products include mushroom, straw mushroom, pholiota, mixed mushroom, grey mushroom, corn kernels, green corns, green beans, red kidney beans, broad beans, bean sprouts, litchi chinensis, longan, yellow peaches, strawberries, tunas, sardines, etc. The brand SC deals with is DOMEE.
Picture of specific products
Annual production capacity	--
Plants and equipments	--
Awards & Honors	--
Certificates / licenses	ISO 9004 Quality System Certification, etc.

SALES INFORMATION

Domestic sales	5%
Regions	Zhangzhou City.
Major domestic clients	Supermarkets, stores, etc.
Competitors	SHANGHAI MALING AQUARIUS CO. LTD; GuangZhou Eagle Coin Enterprises Group Corp; XIAMEN YINLU FOODS GROUP CO. LTD; XIAMEN GULONG FOOD CO. LTD, etc.
Payment terms	Prompt payment; on credit
Export	95%
Regions	USA, Hong Kong, Japan, Europe, Middle East, Southeast Asia, etc.
Major overseas clients	International traders, stores, supermarkets, etc.
Payment terms	L/C, T/T
SC’s products are mainly exported to overseas regions. Its clients are mainly traders, distributors, supermarkets, stores, wholesale markets, etc. SC has fixed clients.
The above information was confirmed by SC’s employee on July 19^th, 2012.

PURCHASE INFORMATION

Main Commodities Purchased	Fruit cans, vegetable cans, mushroom cans, meat cans, etc.
Number of Major Suppliers	About 5
Region	Domestic: 80 % Import: 20%
Major suppliers	ZHANGZHOU XINGFANGYUAN SOFTWARE DEVELOPMENT CO. LTD, etc.
Main Terms of Payment	Local: Prompt payment; on credit Import: L/C, T/T
SC’s products are purchased both domestically and internationally. It has fixedly cooperated domestic manufacture factories which are mainly located in the local place. SC’s overseas suppliers are mainly from European countries including France, UK, etc.
The above information was confirmed by SC’s employee on July 19^th, 2012.

CREDIT

Name of supplier	ZHANGZHOU XINGFANGYUAN SOFTWARE DEVELOPMENT CO. LTD
Main commodities and service supplied	Website construction and maintenance, etc.
Interviewee	Ms. Zhang of Business Department.
Telephone of Interviewee	86 596 2023333
Payment comment	The investigated person confirmed SC is one of their clients and SC’s payment status is good.
Date of interview	July 19^th, 2012

LITIGATION

After checking with China Court organization, the local court website and other major searching websites, no litigation record related to SC in the latest three years is found.

OTHER ADVERSE MEDIA INFORMATION

N/A

FINANCE

SC’s financial information can’t be obtained after searching through all available channels. According to SC’s staff Ms. Xu, it’s a large-sized enterprise in the local industry. Its turnover of 2011 was about 50 million CNY.

Important Ratios:

2010 Industry Financial Indices	Indices of The Best Enterprises	Indices of Industry Average Indices	Indices of The Worst Enterprises
Return on net assets (%)	23.60	9.10	-4.70
Return on total assets (%)	13.80	5.60	-1.40
Gross profit margin (%)	18.70	10.40	-0.10
Turnover of total assets	3.30	1.80	0.30
Turnover of current assets	4.50	2.40	0.40
Turnover days of account receivable	17.73	39.13	257.14
Asset liability ratio (%)	49.00	71.50	92.20
Current ratio	2.65	1.77	0.92
Quick ratio	1.66	1.10	0.57

2011 Industry Financial Indices	Indices of The Best Enterprises	Indices of Industry Average Indices	Indices of The Worst Enterprises
Return on net assets (%)	22.30	8.60	-5.00
Return on total assets (%)	13.60	5.50	-1.40
Gross profit margin (%)	18.30	10.20	-0.10
Turnover of total assets	3.30	1.80	0.30
Turnover of current assets	4.50	2.40	0.40
Turnover days of account receivable	17.65	38.71	240.00
Asset liability ratio (%)	41.90	64.40	85.10
Current ratio	2.58	1.69	0.84
Quick ratio	1.61	1.06	0.53

Analysis of financial indicator

SC mainly deals with sales of canned products. The industry of canned products has been developing fast and its increasing production capacity can meet the domestic market demand. SC has certain industry advantages. With long history, SC has accumulated abundant industry and sales experience. It has certain competitiveness in the local industry. Zhangzhou City, SC’s location is with many can manufacture enterprises. That provides SC with abundant sources of goods. As an individual invested enterprise, SC’s financing capacity and debt paying capacity are weak.

INDUSTRY PROFILE

Industry

SIC Code (China): 6320 wholesale of food, drink and tobacco

Description: wholesale and exporting & importing of produced food, drink, and tobacco; wholesale and exporting & importing of vegetable, fruit, meat, poultry, eggs and aquatic products

Status Quo & Trend

Canned food is the earliest food of China to be sold in the international market. The quality of China’s canned food was the first to meet the international standard. The can industry has always been developing fast. The production capacity of China’s can industry has already meet the domestic market demand. There were about 500 can production industry in China which can produce thousands kinds of cans. The annual production capacity of can industry is about 3 million tons.

In June, 2012, China produced 769,500 tons of cans, increasing 6.50% year/year. In the first half of 2012, the total production volume of China was about 4 million tons, increasing 8.10% year/year.

In the first half of 2012, the total production volume of Fujian Province was 1,154,700 tons, increasing 16.01% year/year, occupying 28.85% of China’s total production volume, following by Hubei Province (occupying 10.35%), Shandong province (occupying 9.25%) and Hunan Province (occupying 7.65%).

Industry Associations

Name of association	Membership of subject (Yes/No)
China Can Industry Association	No
Zhejiang Can Industry Association	No
China Food Industry Association	No

GENERAL COMMENTS

Established in August, 2004, SC mainly deals with sales of canned products. Its products are mainly exported to overseas regions. With long history, SC has stable purchase and sales channels. With long history, SC has accumulated abundant industry and sales experience. It has certain amount of customers. However, SC has certain pressure in international market expanding due to the international trade situation and financial crisis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.15
UK Pound	1	Rs.86.57
Euro	1	Rs.67.60

INFORMATION DETAILS

Report Prepared by :

PDT

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.