MIRA INFORM REPORT

Report Date :

13.12.2014

IDENTIFICATION DETAILS

Name :	CHINA JIANGSU INTERNATIONAL ECONOMIC AND TECHNICAL COOPERATION GROUP, LTD.

Registered Office :	No. 5 Beijing West Road, Nanjing, Jiangsu Province 210005 Pr

Country :	China

Financials (as on) :	31.12.2013

Date of Incorporation :	07.11.1981

Com. Reg. No.:	320000000013210

Legal Form :	Sole State-Owned Enterprise

Line of Business :	Subject is engaged in contracting various internal and overseas projects; undertaking external economic assistance projects; consultation, exploration, design and supervision of various industrial and civil projects; development and management of real estate; exporting equipment and materials need by contracted projects; dispatching engineering labor, manufacture and service business; incorporating non-trading enterprises abroad; domestic trade; restaurant services; import and export; designing, constructing and consulting services of environmental engineering; designing, manufacturing, and installing steel structure and wire table projects, and supplying relative technical services; manufacturing and selling electronic products and telecommunication equipment, supplying relative services of technology and consultation; designing and installing computer network engineering; selling and providing technological services of computers and peripheral equipment; selling automobiles (including cars); designing, installing and repairing air-conditioning and refrigerating equipment.

No of Employees :	935

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good

Payment Behaviour :	Regular

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

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, 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

CHINA JIANGSU INTERNATIONAL ECONOMIC and TECHNICAL COOPERATION group, ltd.

NO. 5 BEIJING WEST ROAD, NANJING, JIANGSU PROVINCE 210005 PR CHINA

TEL: 86 (0) 25-86569810/83273990/83277609

FAX: 86 (0) 25-83310881/83304526

***Note: The given name (China Jiangsu International Economic Technical Cooperation Corp.) was the former one.

SC’s Overseas Import And Export Branch locates in the (9F, Golden Eagle, Hanzhong New Building, No 1 Hanzhongmen N Street Nanjing P R China 210029).

EXECUTIVE SUMMARY

Date of Registration : NOVEMBER 7, 1981

REGISTRATION NO. : 320000000013210

LEGAL FORM : SOLE STATE-OWNED ENTERPRISE

CHIEF EXECUTIVE : PENG XIANGFENG (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 500,000,000

staff : 935

BUSINESS CATEGORY : ENGINEERING & TRADING & SERVICE

REVENUE : CNY 13,969,426,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 1,836,490,000 (AS OF DEC. 31, 2013)

WEBSITE : www.zjgj.com

E-MAIL : cjietcc@jinteco.com

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY GOOD

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : fairly good

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 sole state-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 320000000013210.

SC’s Organization Code Certificate No.: 13485002-7

SC’s Tax No.: 320102134850027

SC’s registered capital: CNY 500,000,000

SC’s paid-in capital: CNY 500,000,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2003-6-20	Legal Representative	Zhang Guisheng	Kong Xinning
2008	Registration No.	3200001104501	320000000013210
--	Registered Capital	CNY 300,000,000	CNY 500,000,000
	Company Name	China Jiangsu International Economic Technical Cooperation Corp.	China Jiangsu International Economic And Technical Cooperation Group, Ltd.
	Legal Form	State-owned enterprise	Sole State-Owned Enterprise
2014-10-13	Legal Representative	Kong Xinning	Peng Xiangfeng

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

Name of Shareholder (s)	% of Shareholding
Jiangsu Province People’s Government	100

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Peng Xiangfeng
General Manager and Director	Xue Lequn
Director	Guo Huadong
	Pan Guohua
	Shi Linchu
Supervisor	Shi Jianguo
	Liu Bo
	Xi Ning
	Qin Wen
	Yao Weibiao
	Yang Jun

RECENT DEVELOPMENT

SC is one of the Top 500 important enterprises in China, and it has got the ISO9001 Quality Management System Certification and the ISO14001 Environmental Management System Certification.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Jiangsu Province People’s Government 100

MANAGEMENT

Peng Xiangfeng, Legal Representative and Chairman

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

Ø Gender: M

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as legal representative and chairman

Xue Lequn, General Manager and Director

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

Ø Gender: M

Ø Age: 58

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as general manager and director

Director

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

Guo Huadong

Pan Guohua

Shi Linchu

Supervisor

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

Shi Jianguo

Liu Bo

Xi Ning

Qin Wen

Yao Weibiao

Yang Jun

BUSINESS OPERATION

SC’s registered business scope includes contracting various internal and overseas projects; undertaking external economic assistance projects; consultation, exploration, design and supervision of various industrial and civil projects; development and management of real estate; exporting equipment and materials need by contracted projects; dispatching engineering labor, manufacture and service business; incorporating non-trading enterprises abroad; domestic trade; restaurant services; import and export; designing, constructing and consulting services of environmental engineering; designing, manufacturing, and installing steel structure and wire table projects, and supplying relative technical services; manufacturing and selling electronic products and telecommunication equipment, supplying relative services of technology and consultation; designing and installing computer network engineering; selling and providing technological services of computers and peripheral equipment; selling automobiles (including cars); designing, installing and repairing air-conditioning and refrigerating equipment.

SC is mainly engaged in contracting international and domestic projects, labor cooperation, import and export, real estate development and international trade.

SC’s contracted projects including: Shanghai Yangming Hill City, Nanjing Hilton International Hotel, Singapore Red Hill City, etc.

SC’s products mainly include: chemical products, pesticides, garments and medicines.

SC sources its merchandises 20% from the overseas market and 80% from domestic market. SC sells 20% of its merchandises in domestic market, and 80% to overseas market.

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.

Staff & Office:

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

SC is known to have approx. 935 staff at present.

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

RELATED COMPANY

Subsidiaries,

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

Jiangsu Complete Equipment Co., Ltd.

Jiangsu Environmental Protection Industry Company Ltd.

Jiangsu Jianda Construction Co. Inc.

Jiangsu Zhongjiang International Investment Co. Ltd.

Jiangsu Jinteco International Trading Co., Ltd.

Etc.

Branches,

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

China Jiangsu International Economic and Technical Cooperation Group, Ltd. Hengtai International Trade Branch

China Jiangsu International Economic and Technical Cooperation Group, Ltd. Light Textile Import and Export Branch

China Jiangsu International Economic and Technical Cooperation Group, Ltd. Overseas Import and Export Branch

China Jiangsu International Economic and Technical Cooperation Group, Ltd. Foreign Trade Branch

China Jiangsu International Economic and Technical Cooperation Group, Ltd. Changzhou Construction Branch

China Jiangsu International Economic and Technical Cooperation Group, Ltd. Shenyang Branch

China Jiangsu International Economic and Technical Cooperation Group, Ltd. Nanjing Construction Branch

China Jiangsu International Economic and Technical Cooperation Group, Ltd. Qingdao Branch

Etc.

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:

Bank of China Jiangsu Province Branch

AC#: 800100003908091001

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2012	As of Dec. 31, 2013
Cash	2,714,260	2,957,937
Financial assets held for trading	7,767	9,138
Notes receivable	68,577	130,239
Accounts receivable	1,243,580	2,330,640
Advances to suppliers	2,988,659	3,101,656
Interest receivable	0	209
Other receivable	1,594,659	1,846,475
Inventory	4,378,816	6,149,479
Non-current assets within one year	0	10,000
Prepaid expenses	0	0
Other current assets	0	6
	------------------	------------------
Current assets	12,996,318	16,535,779
Available-for-sale financial assets	53,924	5,582
Held-to-maturity investment	25,779	5,994
Long-term investment	64,736	91,031
Investment real estate	575,248	575,248
Fixed assets	232,848	351,511
Construction in progress	27,000	44,416
Engineering materials	0	37
Fixed assets in liquidation	49	49
Intangible assets	151,367	145,557
Goodwill	2,624	2,624
Long-term prepaid expenses	2,198	1,609
Deferred income tax assets	5,788	8,593
Other non-current assets	0	0
	------------------	------------------
Total assets	14,137,879	17,768,030
	=============	=============
Short-term loans	880,979	1,026,907
Notes payable	533,864	640,611
Accounts payable	1,142,911	2,984,780
Wages payable	91,936	84,074
Taxes payable	-3,032	-58,158
Interest payable	1,744	6,075
Dividends payable	29	31
Advances from clients	6,185,818	7,232,201
Other payable	2,634,978	2,480,003
Non-current liabilities within one year	1,000	94,000
Accrued expenses	0	0
Other current liabilities	80	0
	------------------	------------------
Current liabilities	11,470,307	14,490,524
Non-current liabilities	1,056,030	1,441,016
	------------------	------------------
Total liabilities	12,526,337	15,931,540
Equities	1,611,542	1,836,490
	------------------	------------------
Total liabilities & equities	14,137,879	17,768,030
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2012	As of Dec. 31, 2013
Revenue	12,661,366	13,969,426
Cost of sales	11,875,930	13,078,398
Taxes and surcharges	218,599	223,128
Sales expense	131,154	147,580
Management expense	302,875	279,661
Finance expense	-31,081	5,926
Investment income	6,888	6,212
Non-operating income	24,636	21,927
Non-operating expense	3,646	5,126
Profit before tax	171,973	218,798
Less: profit tax	26,211	33,715
Profits	145,762	185,083

Important Ratios

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

	As of Dec. 31, 2012	As of Dec. 31, 2013
*Current ratio	1.13	1.14
*Quick ratio	0.75	0.72
*Liabilities to assets	0.89	0.90
*Net profit margin (%)	1.15	1.32
*Return on total assets (%)	1.03	1.04
*Inventory / Revenue ×365	127 days	161 days
*Accounts receivable / Revenue ×365	36 days	61 days
*Revenue / Total assets	0.90	0.79
*Cost of sales / Revenue	0.94	0.94

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears fairly good in its line.

l SC’s net profit margin is average.

l SC’s return on total assets is average.

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

LIQUIDITY: AVERAGE

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

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

l The inventory of SC appears large.

l The accounts receivable of SC appears average.

l The short-term loans of SC appear average.

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

LEVERAGE: FAIRLY GOOD

l The debt ratio of SC is high.

l The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Fairly Good.

CONCLUSIONS

SC is considered an old-established business with fairly good financial conditions in a large size. Taking into consideration of SC’s good background, general performance, reputation as well as market conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.44
UK Pound	1	Rs. 98.15
Euro	1	Rs. 77.38

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	DPT

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.