MIRA INFORM REPORT

Report Date :

24.02.2014

IDENTIFICATION DETAILS

Name :	SYNCHEM INTERNATIONAL CO., LTD.
Registered Office :	Room 3208-3209 World Trade Center, No. 25 Tongxing Street Zhongshan District, Dalian, Liaoning Province 116001 Pr
Country :	China
Financials (as on) :	30.06.2013
Date of Incorporation :	31.07.1998
Com. Reg. No.:	210242000004626
Legal Form :	Limited Liabilities Company
Line of Business :	Subject engaged in international trade mainly include Vitamins, API and pharmaceutical intermediates, Construction chemicals, Biocides, Food/feed additives, Textile additives
No. of Employees :	35

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, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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, 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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to China's, and is expected to further drag Chinese growth in 2013. 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

SYNCHEM INTERNATIONAL CO., LTD.

ROOM 3208-3209 WORLD TRADE CENTER, NO. 25 TONGXING STREET

ZHONGSHAN DISTRICT, DALIAN, LIAONING PROVINCE 116001 PR CHINA

TEL: 86 (0) 411-82530333/39869805

FAX: 86 (0) 411-82530108

EXECUTIVE SUMMARY

Date of Registration : JULY 31, 1998

REGISTRATION NO. : 210242000004626

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : WU TIEPING (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 5,000,000

staff : 35

BUSINESS CATEGORY : TRADING

REVENUE : CNY 63,112,000 (JAN. 1 2013 TO JUN. 30, 2013)

EQUITIES : CNY 10,627,000 (AS OF JUN. 30, 2013)

WEBSITE : www.synchemco.com

E-MAIL : info@synchemco.com

PAYMENT : AVERAGE

MARKET CONDITION : average

FINANCIAL CONDITION : FAIRly stable

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.14 = 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.: 210242000004626 on July 31, 1998.

SC’s Organization Code Certificate No.: 71131229-7

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

SC’s paid-in capital: cny 5,000,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2002-04-16	Shareholder (s)	Zhejiang Xinchang Synthesis Chemical Factory 80% Zhejiang Xinchang Vitamin Factory 20%	Xinchang Synthesis Chemical Factory 80% Xinchang Wuma Synthesis Factory 20%
2002-05-20	Legal Representative	Hu Bofan	Wu Tieping 吴铁平
2003-11-5	Shareholder (s)	Xinchang Synthesis Chemical Factory新 80% Xinchang Wuma Synthesis Factory 20%	Xinchang Synthesis Chemical Factory 80% Wu Tieping 20%
2010-04-29	Shareholder (s) (% of Shareholding)	Xinchang Synthesis Chemical Factory 80% Wu Tieping 20%	Xinhecheng Holding Group Co., Ltd. 55% Wu Tieping45%
--	Registration No.	2102421100712	210242000004626

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

Name of Shareholder (s)	% of Shareholding
Xinhecheng Holding Group Co., Ltd.	55
Wu Tieping	45

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Wu Tieping
Director	Hu Bofan
	Wang Xuewen
Supervisor	Shi Guanqun

RECENT DEVELOPMENT

SC obtained the certificate of ISO 9001-2000 and FAMI-QS Certificate.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Xinhecheng Holding Group Co., Ltd. 55

Wu Tieping 45

Xinhecheng Holding Group Co., Ltd.

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

Legal Representative: Hu Bofan

Registration No.: 330624000015577

Date of Registration: February 14, 1989

Registered Capital: CNY 120,000,000

Add: No. 4 North Zhenjiang Road, Xinchang County, Zhejiang Province

Tel: 86-575-86161888

MANAGEMENT

Wu Tieping , Legal Representative, Chairman and General Manager

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

Ø Gender: M

Ø Age: 47

Ø ID# 21021119660814515X

Ø Working experience (s):

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

Hu Bofan , Director

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

Ø Gender: M

Ø Age: 51

Ø ID# 330624196210286279

Ø Working experience (s):

Also working in Xinhecheng Holding Group Co., Ltd. as legal representative

Wang Xuewen , Director

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

Ø Gender: M

Ø Age: 44

Ø ID# 330624196901080018

Shi Guanqun , Supervisor

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

Ø Gender: M

Ø Age: 42

Ø ID# 330624197104026638

BUSINESS OPERATION

SC’s registered business scope includes international trade, transit trade and commodity exhibition.

SC is mainly engaged in international trade.

SC’s products mainly include: Vitamins, API and pharmaceutical intermediates, Construction chemicals, Biocides, Food/feed additives, Textile additives

SC sources its materials 100% from domestic market. SC sells 100% of its products to the overseas market, mainly India and Southeast Asia.

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

*Major Supplier:

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

Xinchang Synthesis Chemical Factory

Staff & Office:

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

SC is known to have approx. 35 staff at present.

SC rents an area as its operating office of approx. 180 sq. meters at the heading address.

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 Free Trade Zone Sub-branch

AC#: 21201502300050008002

FINANCIALS

Financial Summary

Unit: CNY’000	As of Jun. 30, 2013
Total assets	36,121
	-------------
Total liabilities	25,494
Equities	10,627
	-------------
Unit: CNY’000	Jan. 1 2013 to Jun. 30, 2013
Revenue	63,112
Profit before tax	735
Less: profit tax	110
Profits	625

Note: The detailed financials are not available in SAIC.

Important Ratios

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

	As of Jun. 30, 2013
*Liabilities to assets	0.71
*Net profit margin (%)	0.99
*Return on total assets (%)	1.73
*Revenue / Total assets	1.75

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears average in its line.

l SC’s net profit margin is average.

l SC’s return on total assets is average.

LIQUIDITY: AVERAGE

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

LEVERAGE: AVERAGE

l The debt ratio of SC is average.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

SC is considered small-sized in its line with fairly stable financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.16
UK Pound	1	Rs.103.44
Euro	1	Rs.85.27

INFORMATION DETAILS

Report Prepared by :

MNL

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