MIRA INFORM REPORT

Report Date :

21.02.2014

IDENTIFICATION DETAILS

Name :	shishi longzheng import & export trade co., ltd.
Registered Office :	Inspection Center, Xihuan Road, Shishi, Fujian Province, 362700 PR
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	27.012.2002
Com. Reg. No.:	350581100024633
Legal Form :	Limited Liabilities Company
Line of Business :	Engaged in international trade
No. of Employees :	70

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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
China	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name and address

shishi longzheng import & export trade co., ltd.

INSPECTION CENTER, xihuan road, shishi,

fujian PROVINCE, 362700 PR CHINA

TEL: 86 (0) 595-88571138/83155965 FAX: 86 (0) 595-88592138/88580138

EXECUTIVE SUMMARY

INCORPORATION DATE : december 27, 2002

REGISTRATION NO. : 350581100024633

REGISTERED LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : MR. zhang haibin (CHAIRMAN)

STAFF STRENGTH : 70

REGISTERED CAPITAL : CNY 20,000,000

BUSINESS LINE : trading

TURNOVER : CNY 1,627,300,000 (AS OF DEC. 31, 2011)

EQUITIES : CNY -33,330,000 (AS OF DEC. 31, 2011)

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : fair

OPERATIONAL TREND : fair

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3798 = USD

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

CNY - China Yuan Renminbi

Note: the given tel. no. and fax no. (+86 595 88887011 & +86 595 88887211) don’t belong to SC.

SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on December 27, 2002.

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered capital jointly. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics of this form of co. are as follows:

Upon the establishment of the co., an investment certificate is issued to the each of shareholders.

The board of directors is comprised of three to thirteen members.

The minimum registered capital for a co. is CNY 30,000.

Shareholders may take their capital contributions in cash or by means of tangible assets or intangible assets such as industrial property and non-patented technology.

Cash contributed by all shareholders must account for at least 30% of the registered capital.

Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the other shareholders and to subscribe for the newly increased registered capital of the co.

SC’s registered business scope includes importing and exporting various kinds of commodities and technology, excluding the goods forbidden by the government, processing and manufacturing garments. (with permit if needed).

SC is mainly engaged in international trade.

Mr. Zhang Haibin has been legal representative, chairman and general manager of SC since 2002.

SC is known to have approx. 70 employees at present.

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

http://www.longzheng.com.cn The design is professional and the content is well organized. At present the web site is both in Chinese and English versions.

E-mail: office@longzheng.com.cn

SC’s predecessor is Shishi Container Shipping Corp., a collective-owned enterprise, which was reformed into the present limited liabilities company in Dec. 27, 2007. The Shareholders of Shishi Container Shipping Corp. are Shishi Xinhua Village Committee 51%, and Zhang Haibin 49%.

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2008	Registration no.	3505811001715	350581100024633
2012	Registered capital	CNY 10,000,000	Present amount
	Shareholders and shareholding	Zhang Haibin 70% Lin Yangqing 15% Zhang Haiyi 15%	Present ones

SC has got the certificate of

MAIN SHAREHOLDERS:

Name % of Shareholding

Zhang Haibin 35

Zhang Zhenhua 25

Zhang Guanhua 25

Lin Yangqing 7.5

Zhang Haiyi 7.5

l Legal representative, Chairman and General Manager:

Mr. Zhang Haibin, ID# 359002591226103, born in 1959. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2000 to 2002 Worked in Shishi Container Shipping Corp. as general manager;

From 2002 to present Working in SC as legal representative, chairman and general manager.

SC is mainly engaged in international trade.

SC’s products mainly include: garments, shoes, textile, etc.

SC sources its materials 100% from domestic market, mainly Fujian. SC sells 100% of its products to overseas market, mainly Southeast Asian market.

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.

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

Shishi Longzheng Import & Export Trade Co., Ltd. Dubai Branch

Shishi Longzheng Import & Export Trade Co., Ltd. Yiwu Office

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.

China Construction Bank Shishi Sub-branch

AC#：35001658107050000987

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2010	as of Dec. 31, 2011
Cash & bank	461,320	504,940
Notes receivable	2,790	410
Inventory	62,590	68,190
Accounts receivable	171,760	262,590
Advances to supplies	5,910	6,560
Other receivables	112,970	233,400
Other current assets	0	0
	------------------	------------------
Current assets	817,340	1,076,090
Long-term investments	14,600	14,600
Fixed assets net value	5,320	5,400
Projects under construction	12,710	16,350
Deferred income tax assets	180	0
Intangible assets	6,640	6,640
Other assets	0	0
	------------------	------------------
Total assets	856,790	1,119,080
	=============	=============
Short loans	541,060	337,120
Notes payable	27,590	53,270
Accounts payable	274,370	422,320
Advances from customers	0	0
Accrued Payroll	110	0
Welfare Payable	810	530
Taxes payable	-5,340	-4,790
Other accounts payable	56,380	343,960
Other current liabilities	0	0
	-----------------	-----------------
Current liabilities	894,980	1,152,410
Long term liabilities	0	0
	------------------	------------------
Total liabilities	894,980	1,152,410
Shareholders equities	-38,190	-33,330
	------------------	------------------
Total liabilities & equities	856,790	1,119,080
	=============	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2011
Turnover	1,627,300
Cost of goods sold	1,624,240
Taxes and additional of main operation	150
Income from other operation	2,760
Sales expense	9,880
Management expense	6,890
Finance expense	-9,350
Subsidy income	6,480
Non-operating income	150
Non-operating expense	10
Profit before tax	4,870
Less: profit tax	0
Net profit	4,870

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2011
*Current ratio	0.91	0.93
*Quick ratio	0.84	0.87
*Liabilities to assets	1.04	1.03
*Net profit margin (%)	/	0.30
*Return on total assets (%)	/	0.44
*Inventory /Turnover ×365	/	16 days
*Accounts receivable/Turnover ×365	/	59 days
*Turnover/Total assets	/	1.45
* Cost of goods sold/Turnover	/	1.00

PROFITABILITY: AVERAGE

l The turnover of SC appears good in its line in 2011.

l SC’s net profit margin is average in 2011.

l SC’s return on total assets is average in 2011.

l SC’s cost of goods sold is high in 2011, comparing with its turnover.

LIQUIDITY: FAIR

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 is maintained in an average level 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 an average level in 2011, comparing with the size of its total assets.

LEVERAGE: POOR

l The debt ratio of SC is too high.

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

Overall financial condition of the SC: Fair.

SC is considered medium-sized in its line with fair financial conditions. The large amount of short loans could be a threat to SC’s financial condition. Credit should be extended under guarantee, and C.O.D. is recommended.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.28
UK Pound	1	Rs.103.84
Euro	1	Rs.85.70

INFORMATION DETAILS

Report Prepared by :

NIS

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