MIRA INFORM REPORT

Report Date :

26.03.2013

IDENTIFICATION DETAILS

Name :	YEALINK (XIAMEN) NETWORK TECHNOLOGY CO., LTD.
Registered Office :	Floor 4-5, South Building, No. 63 Wanghai Road, 2^nd Software Park, Siming District, Xiamen, Fujian Province, 350200 PR
Country :	China
Date of Incorporation :	05.11.2001
Com. Reg. No.:	350298200000890
Legal Form :	Shares Limited Company
Line of Business :	Engaged in designing, developing, manufacturing and selling communication products
No. of Employees :	300

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	Regular
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	A2	A2

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 AND ADDRESS

YEALINK (XIAMEN) NETWORK TECHNOLOGY CO., LTD.

FLOOR 4-5, SOUTH BUILDING, NO. 63 WANGHAI ROAD, 2^ND SOFTWARE PARK, SIMING DISTRICT, XIAMEN, FUJIAN PROVINCE, 350200 PR CHINA

TEL: 86 (0) 592-5702000 FAX: 86 (0) 592-5702455

EXECUTIVE SUMMARY

INCORPORATION DATE : NOV. 5, 2001

REGISTRATION NO. : 350298200000890

REGISTERED LEGAL FORM : SHARES LIMITED COMPANY

CHIEF EXECUTIVE : CHEN ZHISONG (GENERAL MANAGER)

STAFF STRENGTH : 300

REGISTERED CAPITAL : CNY 56,000,000

BUSINESS LINE : DESIGN, DEVELOPMENT, MANUFACTURE & TRADE

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : MODERATE AMOUNT

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2166= 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 local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).

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 designing, developing, manufacturing and selling networking products, communication products, electrical products, computer hardware & software, single chip software, and related technological consultant services; network engineer; importing and exporting goods and technologies.

SC is mainly engaged in designing, developing, manufacturing and selling communication products.

Chen Zhisong is legal representative, chairman and general manager 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 software park of Xiamen. Detailed premise information is not available at present.

www.yealink.com The design is professional and the content is well organized. At present it is in both Chinese and English versions.

E-Mail: sales@yealink.com

No significant changes were found during our checks with the local Administration for Industry and Commerce.

Awards:

========

SC gains various awards such as Internet Telephony Product of the Year Award 2012, 2012 Global Enterprise IP Telephony Endpoint Growth Leadership Award, The Best IP Multi-Media Phone Provider, The Best IP Phone Provider, Small Gold Medal for IT-SIBERIA.SIBTELECOM, ITSPA's Best VoIP Customer Premises Equipment award, ISO9001:2008, ISO9001:2000, etc.

MAIN SHAREHOLDERS:

Name % of Shareholding

Wu Zhongyi

28.57

Chen Zhisong

23.22

Lu Rongfu

14.29

Xiamen Yiwanglian Information Technology Services Co., Ltd. (literal translation)

10.71

Zhou Jiwei

10.71

Zhang Lianchang

6.25

Chen Jianrong

6.25

Xiamen Yiwanglian Information Technology Services Co., Ltd. (literal translation)

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

Registration No.: 350298200014276

Legal representative: Chen Zhisong

Registered capital: CNY 6,500,000

l Legal representative, Chairman and General Manager:

Chen Zhisong is currently responsible for the daily management of SC.

Working Experience(s):

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

Also working in Xiamen Yiwanglian Information Technology Services Co., Ltd. as legal representative

l Vice Chairman:

Mr. Wu Zhongyi is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice chairman;

l Directors:

Sun Zhenshou

Li Changqing

Lu Rongfu

Zhou Jiwei

l Supervisor:

Lai Zhihao

Zhang Huirong

SC is mainly engaged in designing, developing, manufacturing and selling communication products.

SC’s products mainly include: IP phone, IP DECT phone, IP video phone, USD phone, etc.

SC sources its materials 60% from domestic market and 40% from overseas market. SC sells 20% of its products in domestic market, and 80% to the overseas market.

The buying terms of SC include Check, T/T, L/C 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.

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.

SC’s management declined to release its bank details.

SC’s management declined to release any financial information.

SC is considered medium-sized in its line with a development history of 12 years. Taking into consideration of SC’s development history and operation size, we would rate SC as an average credit risk company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.09
UK Pound	1	Rs.82.46
Euro	1	Rs.70.49

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.