MIRA INFORM REPORT

Report Date :

02.12.2014

IDENTIFICATION DETAILS

Name :	SHENZHEN EELINK COMMUNICATION TECHNOLOGY CO., LTD.

Registered Office :	South Bldg., 3f Yuyang Building, No. 3 Qimin Road, Langshan No. 2 Road, North Zone, Nanshan Kejiyuan, Shenzhen, Guangdong Province 518057 Pr

Country :	China

Financials (as on) :	31.12.2013

Date of Incorporation :	26.07.2004

Com. Reg. No.:	440301103508094

Legal Form :	Limited Liabilities Company

Line of Business :	· Engaged in software development, design, trading, and technology service for communication products as well as importing and exporting commodities and technology · Providers of GPS and GPRS tracking products and software services Subject product ranges includes :- · GPS Tracker · Portable Tracker · GPS Phone · GPS Watch

No of Employees :	45 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.

Source : CIA

Company name & address

Shenzhen Eelink Communication Technology Co., Ltd.

(TRADE NAME: Eelink Communication Technology (HK) Limited)

SOUTH BLDG., 3F YUYANG BUILDING, NO. 3 QIMIN ROAD

LANGSHAN NO. 2 ROAD, NORTH ZONE, NANSHAN KEJIYUAN

SHENZHEN, GUANGDONG province 518057 PR CHINA

TEL: 86 (0) 755-81482396/86278031/15889393211

FAX: 86 (0) 755-86258387

EXECUTIVE SUMMARY

Date of Registration : july 26, 2004

REGISTRATION NO. : 440301103508094

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : cheng shangzhen (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 5,340,000

staff : 45

BUSINESS CATEGORY : trading

Revenue : CNY 27,420,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 9,620,000 (AS OF DEC. 31, 2013)

WEBSITE : www.eelink.com.cn

E-MAIL : Sales@eelink.com.cn

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIR

OPERATIONAL TREND : ORDINARY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.14 = USD

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

LEGAL STATUS & HISTORY

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 440301103508094 on July 26, 2004.

SC’s Organization Code Certificate No.: 76497823-6

SC’s Tax No.: 440301764978236

SC’s registered capital: cny 5,340,000

SC’s paid-in capital: cny 5,340,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2005-08-15	Legal Representative	Nie Hao	Liu Ying
2005-08-15	Shareholder (s) (% of Shareholding)	Shenzhen City Vcall Communication Technology Co., Ltd. 66.67% Xu Chuncheng 22% Cheng Shangzhen 11.33%	Shenzhen City Vcall Communication Technology Co., Ltd. 33.33% Jiang Ke 5.67% Xu Chuncheng 11% Cheng Shangzhen 5.67% Liu Ying 44.33%
2005-12-29	Legal Representative	Liu Ying	Liang Rong
2006-07-26	Registered Capital	CNY 6,000,000	cny 5,340,000
2006-07-26	% of Shareholding	Shenzhen City Vcall Communication Technology Co., Ltd. 33.33% Jiang Ke 5.67% Xu Chuncheng 11% Cheng Shangzhen 5.67% Liu Ying 44.33%	Shenzhen City Vcall Communication Technology Co., Ltd. 37.4532% Jiang Ke 6.3670% Xu Chuncheng 12.3596% Cheng Shangzhen 6.3670% Liu Ying 37.4532%
2007-03-30	Shareholder (s) (% of Shareholding)	Shenzhen City Vcall Communication Technology Co., Ltd. 37.4532% Jiang Ke 6.3670% Xu Chuncheng 12.3596% Cheng Shangzhen 6.3670 % Liu Ying 37.4532%	Jiang Ke 6.3670% Liu Ying 37.4532% Shenzhen Liuyou Industry Co., Ltd. 12.3596% Shenzhen City Vcall Communication Technology Co., Ltd. 37.4532% Cheng Shangzhen 6.3670%
2008-07-21	% of Shareholding	Jiang Ke 6.3670% Liu Ying 37.4532% Shenzhen Liuyou Industry Co., Ltd. 12.3596% Shenzhen City Vcall Communication Technology Co., Ltd. 37.4532% Cheng Shangzhen 6.3670%	Jiang Ke 6.3670% Liu Ying 37.4530% Shenzhen Liuyou Industry Co., Ltd. 12.3600% Shenzhen City Vcall Communication Technology Co., Ltd. 37.4530% Cheng Shangzhen 6.3670%
2008-07-21	Registration No.	4403011149051	440301103508094
2011-01-30	Legal Representative	Liang Rong	Cheng Shangzhen
2011-01-30	Shareholder (s) (% of Shareholding)	Jiang Ke 6.3670% Liu Ying 37.4530% Shenzhen Liuyou Industry Co., Ltd. 12.3600% Shenzhen City Vcall Communication Technology Co., Ltd. 37.4530% Cheng Shangzhen 6.3670%	Liu Ying 37.4530% Cheng Shangzhen 12.5470% Shenzhen City Vcall Communication Technology Co., Ltd. 37.4530% Jiang Ke 12.5470%
2012-11-5	Shareholder (s) (% of Shareholding)	Liu Ying 37.4530% Cheng Shangzhen 12.5470% Shenzhen City Vcall Communication Technology Co., Ltd. 37.4530% Jiang Ke 12.5470%	Cheng Shangzhen 50% Jiang Ke 50%

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

Name of Shareholder (s)	% of Shareholding
Cheng Shangzhen	50
Jiang Ke	50

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman and General Manager	Cheng Shangzhen
Supervisor	Jiang Ke

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Cheng Shangzhen 50

Jiang Ke 50

MANAGEMENT

Cheng Shangzhen, Legal Representative, Chairman and General Manager

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

· Gender: M

· Working experience (s):

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

Jiang Ke, Supervisor

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

· Gender: F

BUSINESS OPERATION

SC’s registered business scope includes software development, design, trading, and technology service for communication products; importing and exporting commodities and technology.

Providers of GPS and GPRS tracking products and software services

SC’s products mainly include:

GPS Tracker

Portable Tracker

GPS Phone

GPS Watch

SC sources its products 100% from domestic market. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly U.S.A., etc.

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.

*Major Client*

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

Locus Solutions

Staff & Office:

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

SC is known to have approx. 45 staff at present.

SC rents an area as its operating office, but the detailed information is unknown.

RELATED COMPANY

Eelink Communication Technology (HK) Limited

CR No.: 1396075

Date of Registration: November 27, 2009

Legal Form: Private

Status: Live

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

The bank information of SC is not filed in local SAIC.

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2013
Cash	4,650
Notes receivable	0
Accounts receivable	0
Advances to suppliers	0
Other receivable	10
Inventory	5,870
Non-current assets within one year	0
Other current assets	930
	------------------
Current assets	11,460
Fixed assets	270
Construction in progress	0
Intangible assets	0
Long-term investment	0
Deferred income tax assets	0
Other non-current assets	0
	------------------
Total assets	11,730
	=============
Short-term loans	0
Notes payable	0
Accounts payable	1,320
Welfares payable	0
Taxes payable	0
Advances from clients	0
Other payable	85
Other current liabilities	705
	------------------
Current liabilities	2,110
Non-current liabilities	0
	------------------
Total liabilities	2,110
Equities	9,620
	------------------
Total liabilities & equities	11,730
	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2013
Revenue	27,420
Cost of sales	23,280
Sales expense	450
Management expense	10,750
Finance expense	-35
Profit before tax	-7,070
Less: profit tax	-70
Profits	-7,000

Important Ratios

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

	As of Dec. 31, 2013
*Current ratio	5.43
*Quick ratio	2.65
*Liabilities to assets	0.18
*Net profit margin (%)	-25.53
*Return on total assets (%)	-59.68
*Inventory / Revenue ×365	79 days
*Accounts receivable / Revenue ×365	--
*Revenue / Total assets	2.34
*Cost of sales / Revenue	0.85

FINANCIAL COMMENTS

PROFITABILITY: POOR

l The revenue of SC appears average in its line.

l SC’s net profit margin is poor.

l SC’s return on total assets is poor.

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

LIQUIDITY: AVERAGE

l The current ratio of SC is maintained in a fairly good level.

l SC’s quick ratio is maintained in a fairly good level.

l The inventory of SC appears average.

l SC has no accounts receivable.

l SC has no short-term loans.

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

LEVERAGE: FAIR

l The debt ratio of SC is low.

l The risk for SC to go bankrupt is above average.

Overall financial condition of the SC: Fair.

CONCLUSIONS

SC is considered small-sized in its line with fair financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.14
UK Pound	1	Rs.97.05
Euro	1	Rs.77.37

INFORMATION DETAILS

Analysis Done by :	DIV

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.