MIRA INFORM REPORT

Report Date :

09.12.2014

IDENTIFICATION DETAILS

Name :	ZHEJIANG BINGFENG COMPRESSOR CO., LTD.

Registered Office :	no. 477 Binhai Road, Hangzhouwan New Zone, Ningbo, Zhejiang Province 315300 PR

Country :	China

Financials (as on) :	31.12.2011

Date of Incorporation :	15.01.2008

Com. Reg. No.:	330282000029717

Legal Form :	Limited Liabilities Company

Line of Business :	Manufacturing and processing compressors.

No. of Employees :	215

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 and address

ZHEJIANG BINGFENG COMPRESSOR CO., LTD.

no. 477 binhai road, hangzhouwan new zone

ningbo, ZHEJIANG PROVINCE 315300 PR CHINA

TEL: 86 (0) 574-63978288/63261825/63978291

FAX: 86 (0) 574-63978290

EXECUTIVE SUMMARY

Date of Registration : JANUARY 15, 2008

REGISTRATION NO. : 330282000029717

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : SUN YUQING (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 5,000,000

staff : 215

BUSINESS CATEGORY : MANUFACTURING & PROCESSING

Revenue : CNY 106,431,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY 4,791,000 (AS OF DEC. 31, 2011)

WEBSITE : www.zjbingfeng.com

E-MAIL : sun@zjbingfeng.com

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : FAIRly STABLE

OPERATIONAL TREND : ORDINARY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.23 = 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.: 330282000029717 on January 15, 2008.

SC’s Organization Code Certificate No.: 67120163-9

SC’s Tax No.: 330282671201639

SC’s registered capital: CNY 5,000,000

SC’s paid-in capital: CNY 5,000,000

Registration Change Record:-

Date of change	Item	Before the change	After the change
2008-12-19	Legal Representative	Hu Baijun	Sun Yuqing
2008-12-19	% of Shareholding	Xu Dimin 6% Ru Xucong 31% Sun Yuqing 31% Hu Baijun 32%	Xu Dimin 6% Ru Xucong 31% Sun Yuqing 33% Hu Baijun 30%
2009-09-02	Shareholders (% of Shareholding)	Xu Dimin 6% Ru Xucong 31% Sun Yuqing 33% Hu Baijun 30%	Xu Dimin 6% Ru Xucong 31% Sun Yuqing 63%
2010-03-12	Shareholders (% of Shareholding)	Xu Dimin 6% Ru Xucong 31% Sun Yuqing 63%	Wang Yinli4% Xu Dimin6% Sun Yuqing90%

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

Name of Shareholder (s)	% of Shareholding
Wang Yinli	4
Xu Dimin	6
Sun Yuqing	90

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Sun Yuqing
Director	Wang Yinli

RECENT DEVELOPMENT

SC has passed IS09001 quality system certification and operates with different certifications & standards such as CE, CCC, and CB, etc.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Wang Yinli 4

ID# 330222196511083032

Xu Dimin 6

ID# 330222691007693

Sun Yuqing 90

ID# 330222197111025831

MANAGEMENT

Sun Yuqing, Legal Representative, Chairman and General Manager

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

Ø Gender: M

Ø ID# 330222197111025831

Ø Age: 42

Ø Qualification: University

Ø Working experience (s):

From December 2008 to present, working in SC as legal representative, chairman and general manager

Wang Yinli, Supervisor

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

Ø Gender: M

Ø Age: 48

Ø ID# 330222196511083032

BUSINESS OPERATION

SC’s registered business scope includes manufacturing and processing compressors; importing and exporting commodities & technology, excluding ones limited or prohibited by the state.

SC is mainly engaged in manufacturing and processing compressors.

SC’s products mainly include: refrigeration compressors.

SC sources its materials 95% from domestic market, Zhejiang, and 5% from overseas market. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly Europe and Southeast Asia.

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

Staff & Office:

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

SC is known to have approx. 215 staff at present.

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

SC’s overseas marketing department locates in Room 1702-1706, Central Mansion, Cixi, Ningbo, Zhejiang Province

Tel: +86-574-63813098

Fax: +86-574-63815775

RELATED COMPANY

SC is not known to have any subsidiary at present.

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

Basic Bank:

China Construction Bank Cixi Sub-branch

AC#: 3310199513605050609

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010	As of Dec. 31, 2011
Cash	2,153	6,839	13,355
Notes receivable	0	0	5,885
Accounts receivable	7,249	16,774	28,418
Advances to suppliers	6,000	0	0
Other receivable	200	169	167
Inventory	10,362	14,669	19,293
Subsidy receivable	0	469	0
Export drawback receivable	0	0	901
Deferred expenses	82	0	0
Other current assets	0	0	0
	------------------	------------------	------------------
Current assets	26,046	38,920	68,019
Fixed assets	2,517	3,338	3,859
Construction in progress	0	0	0
Intangible assets	0	0	0
Long-term investments	0	0	0
Deferred income tax assets	0	0	0
Other non-current assets	0	0	0
	------------------	------------------	------------------
Total assets	28,563	42,258	71,878
	=============	=============	=============
Short-term loans	20,916	24,000	55,000
Notes payable	1,360	3,530	4,796
Accounts payable	3,217	7,645	7,490
Advances from clients	0	0	0
Payroll payable	132	194	468
Taxes payable	-1,311	-1,104	-703
Other payable	0	3,386	0
Other unpaid expenses	14	28	36
Accrued expenses	132	171	0
Other current liabilities	0	0	0
	------------------	------------------	------------------
Current liabilities	24,460	37,850	67,087
Non-current liabilities	0	0	0
	------------------	------------------	------------------
Total liabilities	24,460	37,850	67,087
Equities	4,103	4,408	4,791
	------------------	------------------	------------------
Total liabilities & equities	28,563	42,258	71,878
	=============	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2009	As of Dec. 31, 2010	As of Dec. 31, 2011
Revenue	16,846	39,295	106,431
Cost of sales	14,536	35,242	99,538
Other business profit	12	8	65
Sales expense	414	960	1,301
Management expense	1,719	1,475	1,883
Finance expense	141	1,277	3,256
Non-operating expenses	24	42	109
Profit before tax	24	307	389
Less: profit tax	0	0	0
Profits	24	307	389

Important Ratios

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

	As of Dec. 31, 2009	As of Dec. 31, 2010	As of Dec. 31, 2011
*Current ratio	1.06	1.03	1.01
*Quick ratio	0.64	0.64	0.73
*Liabilities to assets	0.86	0.90	0.93
*Net profit margin (%)	0.14	0.78	0.37
*Return on total assets (%)	0.08	0.73	0.54
*Inventory / Revenue ×365	225 days	137 days	67 days
*Accounts receivable/ Revenue ×365	158 days	156 days	98 days
* Revenue/Total assets	0.59	0.93	1.48
* Total business cost / Revenue	0.86	0.90	0.94

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears average in its line, and it increased greatly year by year.

l SC’s net profit margin is average in three years.

l SC’s return on total assets is average in three years.

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

LIQUIDITY: FAIR

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

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

l The inventory of SC is maintained in a large level.

l The accounts receivable of SC appears large.

l The short-term loans of SC appear TOO LARGE.

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

LEVERAGE: FAIR

l The debt ratio of SC is slightly high.

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

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

SC is considered small-sized in its line with fairly stable financial conditions. The large amount of inventory, accounts receivable, and short-term loans may 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.96.37
Euro	1	Rs.76.10

INFORMATION DETAILS

Report Prepared by :

TPT

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