MIRA INFORM REPORT

Report Date :

26.12.2014

IDENTIFICATION DETAILS

Name :	HIGH HOPE INT'L GROUP JIANGSU MEDICINES & HEALTH PRODUCTS IMP. & EXP. CORP. LTD.

Registered Office :	12-13/f, High Hope Building, No. 91, Baixia Road, Baixia District, Nanjing, Jiangsu Province, 210001 Pr

Country :	China

Financials (as on) :	31.12.2013

Date of Incorporation :	10.10.1992

Com. Reg. No.:	320000000004071

Legal Form :	One-Person Limited Liability Company

Line of Business :	Subject engaged in selling of biochemical drug and medical machinery.

No. of Employees :	110

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 :	Satisfactory

Payment Behaviour :	Slow but correct

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	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

HIGH HOPE INT'L GROUP JIANGSU MEDICINES & HEALTH PRODUCTS

IMP. & EXP. CORP. LTD.

12-13/f, high hope building, no. 91, baixia road,

baixia district, nanjing, jiangsu PROVINCE, 210001 PR CHINA

TEL: 86 (0) 25-84691893 FAX: 86 (0) 25-84691500

EXECUTIVE SUMMARY

INCORPORATION DATE : oct. 10, 1992

REGISTRATION NO. : 320000000004071

REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY

CHIEF EXECUTIVE : MR. TENG XIAO (CHAIRMAN)

STAFF STRENGTH : 110

REGISTERED CAPITAL : CNY 20,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 1,463,920,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 57,450,000 (AS OF DEC. 31, 2013)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.1524 = 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 Renminbi

SC was registered as a State-owned enterprise at Jiangsu Provincial Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Oct. 10, 1992 and has been under present ownership since 2007.

Company Status: One-person Limited Liability Company

Single person LLC refers to a limited liability company set up by only one natural person or legal person as the single shareholder of it.

The minimum registered capital of Single person LLC is CNY 100,000. The shareholder’s capital contributes, as set out by the articles of associations should be a lump-sum payment in full.

One natural person can only invest in and set up one limited liability company, which is not permitted to invest in and set up a new Single person LLC.

As to any one-person limited liability company, the sole-investor nature of the natural person or legal person shall be indicated in the registration documents of the company and shall be indicated in the business license thereof as well.

The regulation of Single person LLC should be set up by the shareholder

The regulation of Single person LLC has no shareholder meeting.

SC’s registered business scope includes: Permission management project: wholesaling Chinese patent medicine, chemical medicine preparations, chemical raw medicine, antibiotic raw medicine, antibiotic agents, biochemical drug (excluding cold storage drugs), selling of Class II & III medical devices (excluding Implant products, shaping corneal contact lens and extrinsic diagnostic tests), wholesaling pre-packaged food, milk products (including infant formula milk powder), operating dangerous chemicals (in accordance with the “operating licenses for hazardous chemicals”). General operating items: goods and technology import and export, domestic trade, storage, selling of fertilizer, selling of fuel oil, metal and metallic ore and primary agricultural products, online sales of goods.

SC is mainly engaged in selling biochemical drug and medical machinery.

Mr. Teng Xiao has been legal representative and chairman of SC since May of 2013.

SC is known to have approx. 110 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Nanjing. Our checks reveal that SC rents the premise, but the area is unspecified.

www.mehecojs.cn The design is professional and the content is well organized. At present it is in both Chinese and English versions.

E-mail: mehecojs@mehecojs.cn

Changes of its registered information:

Date of change	Item	Before the change	After the change
2007-10-12	Company name	Jiangsu Medicine Health Care Article Imp. & Exp. (Group) Co.	present one
	Legal form	State-owned enterprise	One-person Limited Liability Company
	Registered capital	CNY 8,600,000	CNY 20,000,000
2008-10-8	Legal representative	Wu Yang	Ma Chi
Unspecified	Registration No.	3200001100944	320000000004071
2013-5-28	Legal representative	Ma Chi	Teng Xiao

Organization code: 134762369

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

MAIN SHAREHOLDER:

Name % of Shareholding

Jiangsu High Hope International Group Co., Ltd. 100

Founded in December 1996, Jiangsu High Hope International Group is a provincial-level large foreign trade group combining the former Jiangsu Knitwear & Home-textiles Import & Export (Group) Co., Ltd., Jiangsu Native Produce Import & Export Group Co., Ltd. and Jiangsu Medicines & Health Products Import & Export (Group) Corporation. In 2010, Jiangsu High Hope International Group merged with Jiangsu Skyrun International Group and restructured. In 2013, the operating revenue of High Hope Group has exceeded RMB 48 billion and the import-export volume has exceeded USD 5.2 billion, High Hope Group ranked 233^rd among the top 500 Chinese enterprises, 83^rd among the top 500 Chinese service enterprises and 35^th among the top 500 Chinese foreign trade enterprises.

Registration no.: 320000000002872

Legal representative: Tang Guohai

Registered Capital: CNY 2,200,000,000

Tel: +86-25-84691000/84691010

Fax: +86-25-84572097

E-mail: mail@high-hope.com

Website: http://www.high-hope.com

l Legal representative and chairman:

Mr. Teng Xiao, ID # 32010319601101XXXX, born in 1960. He is currently responsible for the overall management of SC.

Working Experience(s):

From May of 2013 to present Working in SC as legal representative and chairman

l General manager:

Mr. Chen Guofu, ID# 32010319560401XXXX, born in 1956 with university education. He is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager.

l Directors:

Zhu Shusheng

Li Bin, ID# 32010219630704XXXX

Zhu Jin, ID#32010319560223XXXX

Bao Chunzhi, ID# 32011419560611XXXX

l Supervisors:

Cao Yunzhang, ID# 32010619710228XXXX

Lu Jie, ID# 32010319631010XXXX

Zhou Yimin, ID# 11010519680601XXXX

SC is mainly engaged in selling biochemical drug and medical machinery.

SC’s products mainly include vitamins, antibiotics, surgical dressings, amino acid, Chinese patent medicine, and so on.

SC sources its materials 20% from domestic market, and 80% from overseas market. SC sells 10% of its products in domestic market, and 90% 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.

TRADEMARKS & PATENTS

Registration No.	4599599	4599600	10061171
Registration Date	Apr. 28, 2008	Oct. 28, 2008	Jan. 7, 2013
Trademark Design

Etc.

Note: SC’s management declined to release its major suppliers and clients.

High Hope Int’l Group Jiangsu Foodstuffs Import & Export Corp. Ltd.

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

Incorporation Date: May 4, 1998

Registration No.: 320000000011417

Legal representative: Xie Nanping

Registered Capital: CNY 10,000,000

Website: http://www.hhfood.com/

E-mail: hhfood@hhfood.com

Tel: +86-25-84691715

Fax: +86-25-84691800

High Hope Int’l Group Jiangsu Native Produce Imp. & Exp. Corp., Ltd.

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

Incorporation Date: Dec. 21, 1992

Registration No.: 320000000004670

Chief Executive : Li Jinliang

Registered Capital: CNY 270,000,000

Website: www.jnp.com.cn

Tel: +86-25-84653167/84691940

Fax: +86-25-84653123/84691984

High Hope Zhongding Corporation

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

Incorporation Date: October 15, 1981

Registration No.: 320000000000640

Legal Representative: Wan Huizhong

Registered Capital: CNY 278,592,600

Tel: +86-25-84468888

Fax: +86-25-84208398

Website: http://www.jslgroup.com/

E-mail: jsl@jslgroup.com

Overseas:

High Hope (H.K.) Co., Limited

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

CR No.: 0648032

Incorporation date: June 22, 1998

Registered legal form: Private company limited by shares

Status: Live

SC is known to invest in the following companies:

Aland (Jiangsu) Nutraceutical Co., Ltd.

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

Registration no.: 321200400000633

Legal representative: Chang Liang

Legal form: Chinese-foreign equity joint venture enterprise

Registered capital: CNY 26,066,100

Incorporation date: July 28, 1990

Tel: +86-25-84831057

Fax: +86-25-84831013

Website: www.aland.com.cn

E-mail: info@aland.com.cn

High Hope Int’l Group Jiangsu Real Estate Development Co., Ltd.

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

Registration no.: 320000000021766

Legal representative: Dong Ning

Registered capital: CNY 50,000,000

Incorporation date: Sep. 6, 2006

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 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.

Bank of China Jiangsu Branch

AC#：497558191174

Relationship: Normal

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2012	As of Dec. 31, 2013
Cash & bank	91,170	75,540
Inventory	28,540	23,760
Accounts receivable	107,910	105,160
Advances to suppliers	75,490	83,460
Notes receivable	9,450	600
Other accounts receivable	80,950	72,000
Other current assets	0	0
	------------------	------------------
Current assets	393,510	360,520
Fixed assets net value	1,530	1,260
Long-term equity investments	41,380	15,880
Financial assets available for sale	36,170	32,430
Long-term deferred expenses	1,480	1,180
Deferred income tax assets	5,830	3,960
Other assets	0	0
	------------------	------------------
Total assets	479,900	415,230
	=============	=============
Short loans	217,940	113,760
Accounts payable	103,320	112,850
Notes payable	7,470	27,190
Advances from clients	110,800	100,870
Taxes payable	-1,910	1,450
Other accounts payable	1,670	1,640
Other current liabilities	0	0
	------------------	------------------
Current liabilities	439,290	357,760
Long-term liabilities	0	20
	------------------	------------------
Total liabilities	439,290	357,780
Equities	40,610	57,450
	------------------	------------------
Total liabilities & equities	479,900	415,230
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2012	As of Dec. 31, 2013
Turnover	1,682,680	1,463,920
Cost of goods sold	1,624,200	1,409,970
Taxes and additional of main operation	60	50
Sales expense	35,440	32,510
Management expense	17,220	16,900
Finance expense	7,810	7,570
Investment income	4,960	14,560
Asset impairment loss	1,530	7,610
Non-operating income	560	780
Non-operating expense	220	120
Profit before tax	1,720	4,530
Less: profit tax	140	-930
Profits	1,580	5,460

Important Ratios

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

	As of Dec. 31, 2012	As of Dec. 31, 2013
*Current ratio	0.90	1.01
*Quick ratio	0.83	0.94
*Liabilities to assets	0.92	0.86
*Net profit margin (%)	0.09	0.37
*Return on total assets (%)	0.33	1.31
*Inventory /Turnover ×365	6 days	6 days
*Accounts receivable/Turnover ×365	23 days	27 days
*Turnover/Total assets	3.51	3.53
* Cost of goods sold/Turnover	0.97	0.96

PROFITABILITY: AVERAGE

l The turnover of SC appears good in both years in its line, but it decreased in 2013.

l SC’s net profit margin appears average in both years.

l SC’s return on total assets appears average in both years.

l SC’s cost of goods sold is high in both years, comparing with its turnover.

LIQUIDITY: AVERAGE

l The current ratio of SC is maintained in a fair level in both years.

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

l The inventory of SC appears average in both years.

l The accounts receivable of SC appears average in both years.

l The short-term loan of SC appears large in both years.

l SC’s turnover is in a fairly good level in both years, comparing with the size of its total assets.

LEVERAGE: FAIR

l The debt ratio of SC is high in both years.

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 short-term loan could be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.45
UK Pound	1	Rs.98.88
Euro	1	Rs.77.62

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	NIS

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.