MIRA INFORM REPORT

Report Date :

03.05.2014

IDENTIFICATION DETAILS

Name :	DANDONG SHENGXING PAPER MACHINERY CO., LTD.
Registered Office :	No. 8 Group, Qianyang Village, Qianyang Town, Donggang City, Dandong, Liaoning Province, 118301 Pr
Country :	China
Date of Incorporation :	18.04.2007
Com. Reg. No.:	210681004017683
Legal Form :	Limited Liabilities Company
Line of Business :	manufacturing and selling of paper machinery and equipment
No. of Employees :	90

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 & address

dandong shengxing paper machinery co., ltd.

no. 8 group, qianyang village, qianyang town, donggang city, dandong, liaoning PROVINCE, 118301 PR CHINA

TEL: 86 (0) 415-7817666/7817177 FAX: 86 (0) 415-7817177

EXECUTIVE SUMMARY

INCORPORATION DATE : april 18, 2007

REGISTRATION NO. : 210681004017683

REGISTERED LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : MR. shi hanyun (CHAIRMAN)

STAFF STRENGTH : 90

REGISTERED CAPITAL : CNY 43,600,000

BUSINESS LINE : manufacturing

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : average

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.12 = 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on April 18, 2007.

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 manufacturing and selling paper machinery and equipment.

SC is mainly engaged in manufacturing and selling paper machinery and equipment.

Mr. Shi Hanyun has been chairman of SC since 2008.

SC is known to have approx. 90 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Donggang. Our checks reveal that SC owns the total premise about 18,000 square meters.

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

E-mail: shengxing-dryer@hotmail.com

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2007-4-26	Registered Capital	CNY 5,000,000	CNY 10,000,000
2008	Registration No.	2106812800427	210681004017683
2008-6-20	Chairman	Shi Yuanwen	Shi Hanyun
	Shareholders	Shi Yuanwen 60% Zhang Xifeng 40%	Shi Hanyun 60% Zhang Xifeng 40%
2009-1-7	Registered Capital	CNY 10,000,000	CNY 43,600,000
	Shareholders	Shi Hanyun 60% Zhang Xifeng 40%	Shi Hanyun 28.33% Zhang Xifeng 9.17% Shi Yuanwen 62.50%

MAIN SHAREHOLDERS:

Name % of Shareholding

Shi Hanyun 28.33

Zhang Xifeng 9.17

Shi Yuanwen 62.50

Chairman:

Mr. Shi Hanyun, with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

From 2008 to present Working in SC as chairman.

SC is mainly engaged in manufacturing and selling paper machinery and equipment.

SC’s products mainly include: drying cylinder.

SC sources its materials 100% from domestic market, mainly Liaoning. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly France and India.

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.

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

SC is not known to have any subsidiary at present.

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.

SC’s management declined to release the bank information.

SC’s management declined to release the financial information.

SC is considered medium-sized in its line with a development history of 6 years.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.22
UK Pound	1	Rs.101.68
Euro	1	Rs.83.46

INFORMATION DETAILS

Report Prepared by :

MNL

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