MIRA INFORM REPORT

Report Date :

03.12.2014

IDENTIFICATION DETAILS

Name :	CHINA DALIAN INTERNATIONAL COOPERATION (GROUP) HOLDINGS LTD.
Registered Office :	No. 219, Huanghe Road, Xigang District, Dalian, Liaoning Province, 116011 Pr
Country :	China
Financials (as on) :	30.09.2014
Date of Incorporation :	17.04.1993
Com. Reg. No.:	210200000104636
Legal Form :	Shares Limited Company
Line of Business :	Subject is mainly engaged in ocean transportation, project contracting, real estate, international labor cooperation, import and export trade, offshore fishing and other business.
No. of Employees :	636

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 :	Good
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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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, 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 and address

CHINA DALIAN INTERNATIONAL COOPERATION (GROUP) HOLDINGS LTD.

NO. 219, HUANGHE ROAD, XIGANG DISTRICT,

DALIAN, LIAONING PROVINCE, 116011 PR CHINA

TEL: 86 (0) 411-83780358 FAX: 86 (0) 411-83780186

EXECUTIVE SUMMARY

INCORPORATION DATE : APR. 17, 1993

REGISTRATION NO. : 210200000104636

REGISTERED LEGAL FORM : SHARES LIMITED COMPANY

CHIEF EXECUTIVE : MR. ZHU MINGYI (CHAIRMAN)

STAFF STRENGTH : 636

REGISTERED CAPITAL : CNY 308,918,400

BUSINESS LINE : OCEAN TRANSPORTATION, PROJECT CONTRACTING, REAL ESTATE, INTERNATIONAL LABOR COOPERATION, TRADE, ETC.

TURNOVER : CNY 1,253,849,000 (Consolidated, Jan.1 to Sep.30, 2014)

EQUITIES : CNY 2,294,347,000 (Consolidated, as of Sep. 30, 2014)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.1499=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

Note: SC’s complete name should be the heading one.

SC was registered as a shares limited company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Apr. 17, 1993.

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 foreign contracted projects, undertake national aid projects, international labor and technical cooperation, housing development and rental; offshore seas transport and maritime technical services; air freight; architectural design, domestic and foreign investment, warehousing, import and export business, acting countries (regions) import and export business; general training (the above range limited licensed subsidiaries); private immigration intermediary services (within the permitted range); car business; purchasing agricultural products; laws and regulations did not provide approval, companies choose to operate the project, carry out business activities; parking business; selling pre-packaged food, wine, dairy products, agricultural and livestock products.

SC is mainly engaged in ocean transportation, project contracting, real estate, international labor cooperation, import and export trade, offshore fishing and other business.

Mr. Zhu Mingyi is the legal representative and chairman of SC at present.

SC is known to have approx. 636 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Dalian. The detailed information of the premise is unspecified.

http://www.cdigstock.com The website can not be landed at present for technical reason.

E-mail: cdigstock@china-cdig.com

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
Unknown	Registration no.	24239662-6	Present one

SC is a listed company in Shenzhen Stock Exchange Market with the code of 000881 on Sep. 2, 1998.

Tax Registration Certificate No.: 210203241281202

Organization Code: 241281202

For the past two years there is no record of litigation.

MAIN SHAREHOLDERS: (As of Sep. 30, 2014)

Name % of shareholdings

China Dalian International Economic & Technical Cooperation Group Co., Ltd.　 18.38

Dalian Liyou Investment Co., Ltd. (in Chinese Pinyin) 1.58

Dalian General Union Labor Service Company (literal translation) 1.32

CITIC Trust Co., Ltd. - Rongying CITIC Securities No. 1 Umbrella

Structured Securities Investment Assembled Fund Trust Plan

Wan Qiao 0.88

China Construction Bank Corporation - Morgan Stanley Huaxin Zhuoyue

Growth Securities Investment Fund 0.81

Dalian Linyuan Trade Co., Ltd. (in Chinese Pinyin) 0.71

Dahua Group Co., Ltd. 0.66

Zeng Lihui 0.35

Chang’an Fund- Agricultural Bank of China-Chang’an Xunuo No. 1

Grade Asset Management Plan 0.34

Other shareholders 73.65

China Dalian International Economic & Technical Cooperation Group Co., Ltd.　

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

China Dalian International Economic and Technical Cooperation Group Co., Ltd. a large-scale state-owned comprehensive company, specializes in the business of foreign economic and technical cooperation.

With the business scope covering the fields of construction project contracting, international labor service cooperation, real estate development, ocean transportation, pelagic fishery, international trade, bio-pharmacy, aquaculture and aquatic products processing, etc, the company has invested and set up affiliates in Singapore, Suriname, Russia, Gabon, Guinea, Sierra Leone, Argentina, Spain, south Korea, Japan and so on , and has built up a friendly and stable economic and trade relationship with hundreds of customers from more than 70 countries and regions all over the world.

Incorporation date: Feb. 16, 1985

Registration no.: 210200000021027

Registered capital: CNY 402,620,000

Legal representative: Zhu Mingyi

Legal form: Limited liabilities co.

Web: http://www.china-cdig.com/

E-mail: cdig@china-cdig.com

Tel: 86-411-83780756

Fax: 86-411-83780896

Dalian Liyou Investment Co., Ltd. (in Chinese Pinyin)

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

Registration no.: 210200000271457

Registered capital: CNY 3,000,000

Legal representative: Li Li

Legal form: Limited liabilities co.

Dalian General Union Labor Service Company (literal translation)

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

Incorporation date: Nov. 24, 1986

Registration no.: 210202000012783

Registered capital: CNY 281,000

Legal representative: Cheng Zhigang

Legal form: Collective-owned enterprise

l Legal Representative and Chairman:

Mr. Zhu Mingyi, born in 1951, with university education, senior political engineer. He is currently responsible for the overall management of SC.

Working Experience(s):

At present working in SC as legal representative and chairman.

Also working in China Dalian International Economic & Technical Cooperation Group Co., Ltd. as legal representative

l Vice Chairman:

Mr. Chen Ronghui, born in 1965, with master’s degree, senior economist, senior accountant. He is currently responsible for the daily management of SC.

Working Experience(s):

At present working in SC as vice chairman.

l General Manager:

Mr. Zhang Lanshui, born in 1963, with master’s degree. He is currently responsible for the daily management of SC.

Working Experience(s):

At present working in SC as general manager.

Also working in Dalian Guohe Jiahui Real Estate Development Co., Ltd. and Dalian Guohe Huibang Real Estate Investment Management Co., Ltd. (in Chinese Pinyin) as legal representative.

l Vice General Manager:

Mr. Wang Jun, born in 1968, with master’s degree, senior engineer. He is currently responsible for the daily management of SC.

Working Experience(s):

At present working in SC as vice general manager.

Also working in Dalian International Cooperation Offshore Fishing Co., Ltd. (in Chinese Pinyin) as legal representative.

l Directors:

Zhang Xianzhi

Wang Yan

Wang Chengmin

Chen Shuwen

Zheng Xiangzhi

l Supervisors:

Jiang Jianguo

Dong Wei

Qin Wenyan

SC is mainly engaged in ocean transportation, project contracting, real estate, international labor cooperation, import and export trade, offshore fishing and other business.

SC’s business mainly includes ocean transportation, project contracting, real estate, international labor cooperation, import and export trade, offshore fishing and other business.

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.

Trademarks & Patents

No record

Customers:

Liaoning Wuliuqiba Science and Education Co., Ltd. (in Chinese Pinyin)

Suriname Ministry of Public Works

etc.

Suppliers:

Dalian Changxing Construction Group Co., Ltd.

Dalian Boyuan Construction Group Co., Ltd.

Etc.

SC is known to have the following subsidiaries at present:

Dalian International Cooperation Offshore Fishing Co., Ltd. (in Chinese Pinyin)

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

Incorporation date: 1996-10-17

Registration no.: 210200000014600

Registered capital: CNY 36,000,000

Legal representative: Wang Jun

Legal form: Limited liabilities co.

Dalian Guohe Jiahui Real Estate Development Co., Ltd.

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

Incorporation date: 1998-11-30

Registration no.: 210200400023260

Registered capital: CNY 8,000,000

Legal representative: Zhang Lanshui

Legal form: One-person Limited Liability Company

Dalian Guohe Huibang Real Estate Investment Management Co., Ltd. (in Chinese Pinyin)

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

Incorporation date: 2007-9-27

Registration no.: 210200000094828

Registered capital: CNY 100,000,000

Legal representative: Zhang Lanshui

Legal form: Limited liabilities co.

Etc.

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’s suppliers declined to make any comments.

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 refused to release its banking information.

Consolidated Balance Sheet

Unit: CNY’000

	As of Sep. 30, 2014	As of Dec. 31, 2013
Cash & bank	701,982	1,294,340
Inventory	1,943,281	1,281,951
Accounts receivable	297,058	139,171
Advances to suppliers	211,471	134,477
Other accounts receivable	98,471	36,617
Other current assets	132,248	127,175
	------------------	------------------
Current assets	3,384,511	3,013,731
Financial assets available for sale	3,000	3,000
Long term accounts receivable	36,672	22,679
Investment property	21,977	20,574
Fixed assets net value	2,943,557	3,019,206
Projects under construction	67,413	18,938
Long term investment	21,227	20,683
Intangible assets	415	1,798
Deferred income tax assets	13,050	10,715
Other assets	0	0
	------------------	------------------
Total assets	6,491,822	6,131,324
	=============	=============
Short loans	683,182	506,251
Notes payable	0	4,993
Accounts payable	494,432	409,374
Advances from clients	438,577	275,943
Employee pay payable	14,235	46,059
Taxes payable	7,830	37,244
Interest payable	18,587	4,381
Dividends payable	1,433	1,523
Other accounts payable	342,919	343,161
Non-current liabilities due within one year	212,662	200,991
Other current liabilities	304,539	303,567
	------------------	------------------
Current liabilities	2,518,396	2,133,487
Non-current liabilities	1,679,079	1,770,835
	------------------	------------------
Total liabilities	4,197,475	3,904,322
Equities	2,294,347	2,227,002
	------------------	------------------
Total liabilities & equities	6,491,822	6,131,324
	=============	=============

Consolidated Income Statement

Unit: CNY’000

	Jan. 1 to Sep. 30, 2014	As of Dec. 31, 2013
Turnover	1,253,849	1,997,645
Cost of goods sold	990,371	1,562,830
Taxes and additional of main operation	18,914	116,827
Sales expense	16,442	25,134
Management expense	130,159	214,628
Finance expense	22,682	-15,522
Asset impairment loss	0	-1,510
Investment income	544	11,699
Non-operating income	22,582	55,711
Non-operating expense	-11,475	6,837
Profit before tax	109,882	155,831
Less: profit tax	15,803	41,447
Profits	94,079	114,384

Important Ratios

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

	As of Sep. 30, 2014	As of Dec. 31, 2013
*Current ratio	1.34	1.41
*Quick ratio	0.57	0.81
*Liabilities to assets	0.65	0.64
*Net profit margin (%)	7.50	5.73
*Return on total assets (%)	1.45	1.87
*Inventory /Turnover ×365	/	235 days
*Accounts receivable/Turnover ×365	/	26 days
*Turnover/Total assets	0.19	0.33
* Cost of goods sold/Turnover	0.79	0.78

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears good in its line.

l SC’s net profit margin is fairly good.

l SC’s return on total assets is average.

l SC’s cost of goods sold is average, comparing with its turnover.

LIQUIDITY: FAIR

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

l SC’s quick ratio is maintained in a normal level in 2013 but fair in the first 3 quarters of 2014.

l The inventory of SC appears large.

l The accounts receivable of SC appears average.

l The short-term loan of SC appears average.

l SC’s turnover is in a poor 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. The large amount of inventory could be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.93
UK Pound	1	Rs.97.39
Euro	1	Rs.77.21

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIT

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.