MIRA INFORM REPORT

Report Date :

04.12.2014

IDENTIFICATION DETAILS

Name :	SHANGHAI ARTHON INTERNATIONAL TRADE CO., LTD.
Registered Office :	No. 188 Jin Ou Road, Jinshanwei Town, Jinshan District Shanghai 201512 PR
Country :	China
Financials (as on) :	31.12.2013
Date of Incorporation :	17.06.2009
Com. Reg. No.:	310112000898038
Legal Form :	Limited Liability Company
Line of Business :	Importing and exporting goods and technology; selling chemical products, edible agricultural products, food additives, medical devices, blood pressure monitors, magnetic appliances, home blood glucose meter, seedlings, environmental protection equipment, digital electronic products, garments, daily necessities, handicrafts, ceramics, cosmetics, jewelry, communications equipment
No. of Employees	06

NOTES:

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ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
China	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 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. Debt overhang from its credit-fueled stimulus program in 2008-10, particularly among local governments, and soaring property prices challenge policy makers currently. Their efforts to cool a red-hot property market in 2011 appear to have curbed inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future. 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

SHANGHAI ARTHON INTERNATIONAL TRADE CO., LTD.

NO. 188 JIN OU ROAD, JINSHANWEI TOWN, JINSHAN DISTRICT

SHANGHAI 201512 PR CHINA

TEL: 86 (0) 21-37285116/37285592

FAX: 86 (0) 21-37285115

EXECUTIVE SUMMARY

DATE OF REGISTRATION : JUNE 17, 2009

REGISTRATION NO. : 310112000898038

LEGAL FORM : LIMITED LIABILITY COMPANY

CHIEF EXECUTIVE : ZHANG JIE (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 10,000,000

staff : 6

BUSINESS CATEGORY : TRADING

Revenue : CNY 9,860,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 260,000 (AS OF DEC. 31, 2013)

WEBSITE : N/A

E-MAIL : N/A

PAYMENT : AVERAGE

MARKET CONDITION : fair

FINANCIAL CONDITION : fair

OPERATIONAL TREND : FAIR

GENERAL REPUTATION : fair

EXCHANGE RATE : CNY 6.24 = USD 1

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

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.: 310112000898038 on June 17, 2009.

SC’s Organization Code Certificate No.: 69016802-9

SC’s registered capital: CNY 10,000,000

SC’s paid-in capital: CNY 10,000,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2014-2-20	Registered Capital	CNY 1,000,000	CNY 10,000,000

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

Name of Shareholder (s)	% of Shareholding
Hu Jingbo	50
Zhang Jie	50

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Zhang Jie
Supervisor	Hu Jingbo

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Hu Jingbo 50

Zhang Jie 50

MANAGEMENT

Zhang Jie, Legal Representative, Chairman and General Manager

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

Gender: M

Qualification: University

Working experience (s):

From 2009 to present, working in SC as legal representative, chairman and general manager

Hu Jingbo, Supervisor

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

Gender: M

Qualification: University

Working experience (s):

At present, as supervisor of SC, also working in Shanghai Twisun Bio-pharm Co., Ltd. as legal representative

BUSINESS OPERATION

SC’s registered business scope includes importing and exporting goods and technology; selling chemical products, edible agricultural products, food additives, medical devices, blood pressure monitors, magnetic appliances, home blood glucose meter, seedlings, environmental protection equipment, digital electronic products, garments, daily necessities, handicrafts, ceramics, cosmetics, jewelry, communications equipment.

SC is mainly engaged in international trade.

SC’s products mainly include: APIs, intermediate, prasugrel, paliperidone, lapatinib, nilotinib, gemcitabine, fasudil, sitagliptin.

SC sources its products 100% from domestic market, mainly Shanghai. SC sells 100% of its products overseas market, mainly Asia, Europe, North America, Oceania, etc.

The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include L/C and Credit of 30-60 days.

Staff & Office:

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

SC is known to have approx. 6 staff at present.

SC rents an area as its operating office of approx. 100 sq. meters at the heading address.

RELATED COMPANY

Shanghai Twisun Bio-pharm Co., Ltd.

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

Date of Registration: August 13, 2007

Registration No.: 310226000820278

Legal Form: Limited Liability Company

Chief Executive: Hu Jingbo

Registered Capital: CNY 16,000,000

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 SAIC.

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2013
Cash	1,080
Notes receivable	0
Accounts receivable	0
Other receivable	6,260
Inventory	7,310
Non-current assets within one year	0
Other current assets	50
	------------------
Current assets	14,700
Fixed assets	0
Long-term prepaid expenses	0
Deferred income tax assets	0
Other non-current assets	0
	------------------
Total assets	14,700
	=============
Short-term loans	0
Notes payable	0
Accounts payable	990
Advances from clients	19,480
Other payable	-4,300
Other current liabilities	-1,730
	------------------
Current liabilities	14,440
Non-current liabilities	0
	------------------
Total liabilities	14,440
Equities	260
	------------------
Total liabilities & equities	14,700
	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2013
Revenue	9,860
Cost of sales	8,710
Sales expense	900
Management expense	240
Finance expense	10
Profit before tax	-7
Less: profit tax	21
Profits	-28

Important Ratios

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

	As of Dec. 31, 2013
*Current ratio	1.02
*Quick ratio	0.51
*Liabilities to assets	0.98
*Net profit margin (%)	-0.28
*Return on total assets (%)	-0.19
*Inventory / Revenue ×365	271 days
*Accounts receivable/ Revenue ×365	--
*Revenue/Total assets	0.67
*Cost of sales / Revenue	0.88

FINANCIAL COMMENTS

PROFITABILITY: FAIR

The revenue of SC appears average in its line.

SC’s net profit margin is fair.

SC’s return on total assets is fair.

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

LIQUIDITY: FAIR

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

SC’s quick ratio is maintained in a fair level.

The inventory of SC appears large.

SC has no accounts receivable.

SC has no short-term loans.

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

LEVERAGE: FAIR

The debt ratio of SC is fairly high.

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. The large amount of inventory may be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.87
UK Pound	1	Rs.96.83
Euro	1	Rs.76.57

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NIT

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