MIRA INFORM REPORT

Report Date :

25.10.2012

IDENTIFICATION DETAILS

Name :	JIANGXI FUSHINE PHARMACEUTICAL CO., LTD.

Formerly Known As :	Jingdezhen Fuxiang Pharmaceutical Co., Ltd.

Registered Office :	No. 2 Yuli Industrial Zone, Changjiang District, Jingdezhen City, Jiangxi Province, 333000 Pr

Country :	China

Financials (as on) :	30.06.2012

Date of Incorporation :	20.03.2002

Com. Reg. No.:	360200210008121

Legal Form :	Shares Limited Company

Line of Business :	manufacturing and selling APIs and pharmaceutical intermediates

No. of Employees :	300 employees

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

China

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

china - ECONOMIC OVERVIEW

Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.

Source : CIA

Company name & address

JIANGXI FUSHINE PHARMACEUTICAL co., ltd.

NO. 2 YULI INDUSTRIAL ZONE, CHANGJIANG DISTRICT, JINGDEZHEN CITY, JIANGXI PROVINCE, 333000 PR CHINA

TEL: 86 (0) 798-2193328/2193308 FAX: 86 (0) 798-2193330

EXECUTIVE SUMMARY

INCORPORATION DATE : Mar. 20, 2002

REGISTRATION NO. : 360200210008121

REGISTERED LEGAL FORM : shares limited co.

CHIEF EXECUTIVE : Mr. bao jianhua (CHAIRMAN)

STAFF STRENGTH : 300

REGISTERED CAPITAL : CNY 51,000,000

BUSINESS LINE : manufacturing

TURNOVER : cny 170,103,000 (JAN. 1 TO JUNE 30, 2012)

EQUITIES : cny 143,544,000 (AS OF JUNE 30, 2012)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.25= 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

SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 20, 2002 and has been under present legal form since 2012.

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 APIs (valid until May 24, 2014); manufacturing and selling chemical materials (excluding hazardous chemicals); import and export business.

SC is mainly engaged in manufacturing and selling APIs and pharmaceutical intermediates.

Mr. Bao Jianhua is the legal representative and chairman of SC at present.

SC is known to have approx. 300 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 Jingdezhen. SC’s management declined to release detailed information of the premise.

http://www.fuxiangpharm.com/ The design is professional and the content is well organized. At present the web site is in Chinese and English versions.

E-mail: infor@fuxiangpharm.com

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2012	Registered capital	CNY 16,000,000	Present amount
	Company name	Jingdezhen Fuxiang Pharmaceutical Co., Ltd.	Present one
	Registered legal form	Limited liabilities company	Present one

MAIN SHAREHOLDERS:

Name % of Shareholding

Bao Jianhua 49.60

Zhejiang Yongtai Technology Co., Ltd. 26.00

Yu Wenjun 10.00

Jingdezhen Fushine Investment Co., Ltd. 7.00

Chen Bin 4.00

Bao Danhong 1.50

Ke Xili 0.50

Niu Yunbo 0.30

Feng Shenrong 0.50

Jin Jizhong 0.30

Wei Yongchao 0.30

Zhejiang Yongtai Technology Co., Ltd.

…………………………………………

It is listed in Shenzhen Stock Exchange with the stock code 002326.

Legal representative: Wang Yingmei

Registration No.: 331000000000876

Registered capital: CNY 240,300,000

Incorporation date: Oct. 11, 1999

Add: Linhai Park, Chemical & Pharmaceutical Base, Linhai, Zhejiang Province

Tel: 0086-576-85588118

Fax: 0086-576-85588006

Website: http://www.yongtaitech.com/

Email: sales@yongtaitech.com

Legal representative and Chairman:

Mr. Bao Jianhua born in 1977, he is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman

SC is mainly engaged in manufacturing and selling APIs and pharmaceutical intermediates.

SC’s products mainly include:

APIs: Tazobactam, Tazobactam Sodium, Sultamicillin Tosilate, Sultamicillin Base, Sulbactam pivoxil, Sulbactam Sodium, etc.

Pharmaceutical Intermediates: Sulbactam Acid, Iodomethyl Sulbactam, Tazobactam Benzhydryl, Diphenyl Methyl Ester, Piperacillin Acid, 5-Mercapto-1-Methyltetrazole, 4-Ethyl-2, 3-Dioxo-1-Piperazinecarbonylchloride, L-2-Aminobutanamide Hydrochloride, HO-EPCP, etc.

SC sources its materials 20% from the overseas market and 80% from domestic market. SC sells 50% of its products in domestic market and 50% 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, T/T, L/C and Credit of 30-60 days.

Note: SC’s management declined to release its major clients and suppliers.

According to the website http://www.yongtaitech.com/:

· Binhai Yongtai Pharmaceutical & Chemical Co., Ltd.

Binhai Yongli Chemical Trade Co., Ltd.

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.

SC declined to release its bank details.

Financial Summary

Unit: CNY’000

	As of Dec. 31, 2011	As of June 30, 2012
Total Liabilities	233,118	259,249
Shareholders equities	124,046	143,544
Total Assets	357,164	402,793

	As of Dec. 31, 2011	Jan. 1 to June 30, 2012
Turnover	291,367	170,103
Net profit	38,891	17,416

Note: we did not find SC’s detailed financial reports. The above financial date comes from the information on SC in the public reports of Zhejiang Yongtai Technology Co., Ltd.

Important Ratios

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

	as of Dec. 31, 2011	As of June 30, 2012
*Liabilities to assets	0.65	0.64
*Net profit margin (%)	13.35	10.24
*Return on total assets (%)	10.89	4.32
*Turnover/Total assets	0.82	0.42

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good in its line.

l SC’s net profit margin is fairly good.

l SC’s return on total assets is fairly good.

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

LEVERAGE: AVERAGE

l The debt ratio of SC is average.

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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.59
UK Pound	1	Rs.85.81
Euro	1	Rs.69.91

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.