MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	ZHEJIANG BINGFENG COMPRESSOR CO., LTD.
Registered Office :	No. 477 Binhai Road, Hangzhouwan New Zone Ningbo, Zhejiang Province 315300 PR
Country :	China
Date of Incorporation :	15.01.2008
Com. Reg. No.:	330282000029717
Legal Form :	Limited Liabilities Company
Line of Business :	Manufacturing and Processing Compressors; Importing and Exporting Commodities & Technology, Excluding Ones Limited or Prohibited by the State.
No of Employees :	220

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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

ZHEJIANG BINGFENG COMPRESSOR CO., LTD.

NO. 477 BINHAI ROAD, HANGZHOUWAN NEW ZONE

NINGBO, ZHEJIANG PROVINCE 315300 PR CHINA

TEL: 86 (0) 574-63978288/63261825/63978291/63905602

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 : 220

BUSINESS CATEGORY : MANUFACTURING & PROCESSING

Revenue : N/A (AS OF DEC. 31, 2013)

EQUITIES : N/A (AS OF DEC. 31, 2013)

WEBSITE : www.zjbingfeng.com

E-MAIL : sun@zjbingfeng.com

PAYMENT : unknown

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : ORDINARY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.15 = 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
	% 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 Yinli 4% Xu Dimin 6% Sun Yuqing 90%

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: 43

Ø Qualification: University

Ø Working experience (s):

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

Wang Yinli, Supervisor

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

Ø Gender: M

Ø Age: 49

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 100% from domestic 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. 220 staff at present.

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

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#: 33101995136050506099

FINANCIALS

SC’s financials are not filed in local SAIC, and SC also refused to release the details.

CONCLUSIONS

SC is considered small-sized in its line with 6 years history.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.20
UK Pound	1	Rs.97.80
Euro	1	Rs.77.48

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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.