MIRA INFORM REPORT

Report Date :

07.05.2014

IDENTIFICATION DETAILS

Name :	A.H.A INTERNATIONAL CO., LTD.
Registered Office :	Jin’an Mansion, No. 306, Tunxi Road, Hefei City, Anhui Province 230001 Pr
Country :	China
Financials (as on) :	30.06.2013
Date of Incorporation :	28.11.2001
Com. Reg. No.:	340000000027137
Legal Form :	Limited Liabilities Company
Line of Business :	importing and exporting of various commodities including Pharmaceuticals, Chemicals, Food Ingredients, lighting & display, building & materials, tire, bicycles, textiles & garments and medical appliances
No. of Employees :	120

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, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

A.H.A INTERNATIONAL CO., LTD.

JIN’AN MANSION, NO. 306, TUNXI ROAD, HEFEI CITY,

ANHUI PROVINCE 230001 PR CHINA

TEL: 86 (0) 551-64673773/64673817/64673781 FAX: 86 (0) 551-64673700

EXECUTIVE SUMMARY

INCORPORATION DATE : nov. 28, 2001

REGISTRATION NO. : 340000000027137

REGISTERED LEGAL FORM : limited liabilities company

CHIEF EXECUTIVE : Ms. xu xuehua (chairman)

STAFF STRENGTH : 120

REGISTERED CAPITAL : cny 18,620,000

BUSINESS LINE : trading

TURNOVER : CNY 460,170,000 (Jan. 1 to jun. 30, 2013)

EQUITIES : CNY 86,890,000 (AS OF jun. 30, 2013)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.1199 = 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 provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Nov. 28, 2001.

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 Permission management project: Selling hazardous chemicals, non-pharmaceutical precursor chemicals (anthranilic acid); selling prepackaged food such as alcohol, unpacked food, milk products (including infant formula milk powder). General operating items: import and export business; Selling chemical materials and products, pharmaceutical raw materials, building materials, packaging materials, machinery and electronic equipment, rubber and plastic products, hardware, automotive, food agricultural products, health care products, mineral products, arts and crafts, general merchandise, garments and shoes and hats, knitting and textiles; selling of food additives; warehousing, packaging services; business information consulting services; rental car, leasing of houses.

SC is mainly engaged in importing and exporting various commodities.

Ms. Xu Xuehua has been legal representative and chairman of SC since 2001.

SC is known to have approx. 120 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and head office in the commercial zone of Hefei. SC’s accountant refused to release the detail information of the total premise.

http://www.ahaint.com The design is professional and the content is well organized. At present it is in both Chinese and English versions.

E-mail: xuxuehua@anhuichem.com

office@anhuichem.com

import@anhuichem.com

pharma@anhuichem.com

SC has got the ISO 9001:2008 Quality Management System Certificate.

Honors

=====

Changes of its registered information:

Date of change	Item	Before the change	After the change
2009	Registered capital	CNY 11,760,000	CNY 18,620,000
	Shareholders	Xu Xuehua 20.9%; Huang Guangming 15.3%; Liang Qing 12.75%; Other individuals 38.3%	Present ones
Unknown	Registration No.	3400001003394	Present one

See below for SC as executive party (defendant).

Executed Party	A.H.A International Co., Ltd.
Court	Anhui Province Hefei City Intermediate People’s Court
Date of Case	September 25, 2009
Case Number	(2009) 00007
Claim Amount	CNY 0
Case Status	Completed

Remark: Due to the lack of information, we are unable to provide the cause of action, judgment or other information.

MAIN SHAREHOLDERS:

Name % of Shareholding

Xu Xuehua 21.85

Huang Guangming 16.24

Liang Qing 14.63

Ge Min 11.82

Gao Yu 11.82

Zhang Wei 11.82

Yu Lingmin 11.82

Legal representative and chairman:

Ms. Xu Xuehua , born in 1955. She is currently responsible for the overall management of SC.

Working Experience(s):

From 2001 to present Working in SC as chairman and legal representative

Also working in Anhui Huakun Investment Co., Ltd. (in Chinese Pinyin) as legal representative.

General manager:

Mr. Huang Guangming , born in 1964. He is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager.

Directors:

Yu Lingmin

Liang Qing

Ge Min

Supervisors:

Xu Bin

Zhang Wei

Cheng Xiaomei

SC is mainly engaged in importing and exporting various commodities.

SC’s products mainly include: Pharmaceuticals, Chemicals, Food Ingredients, lighting & display, building & materials, tire, bicycles, textiles & garments and medical appliances.

SC sources its materials 80% from domestic market, and 20% 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.

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

SC is known to invest in the following companies:

Anhui Huakun Investment Co., Ltd. (in Chinese Pinyin)

Registration no.: 340000000053803

Legal representative: Xu Xuehua

Registered capital: CNY 36,000,000

Legal form: Shares limited co.

Incorporation date: Nov. 11, 2011

Zenith International Group Co., Limited (Hong Kong)

CR No.: 1037909

Date of Incorporation: 2006-4-12

Company Status: Private

Active Status: Live

Golden Eagle Logistics (Shanghai) Inc.

Registration No.: 310115001651674

Incorporation Date: Mar. 11, 2005

Chairman: Diao Li

Registered Capital: CNY 6,000,000

Web: http://www.jd-shipping.com/

E-mail: accshoff@21cn.com

Tel.: +86-(0) 13788965279

Fax: +86-21-56711559

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 Anhui Province Branch Operating Department

AC#：181201151347

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2012 (audited)	As of Jun. 30, 2013
Cash & bank	104,200	110,620
Inventory	20,590	24,010
Notes receivable	300	310
Accounts receivable	228,020	262,120
Other accounts receivable	18,620	17,070
Other current assets	0	0
	------------------	------------------
Current assets	371,730	414,130
Fixed assets net value	2,310	3,020
Long-term equity investments	27,070	27,070
Long-term deferred expenses	300	400
Intangible and other assets	0	0
	------------------	------------------
Total assets	401,410	444,620
	=============	=============
Short loans	42,800	42,800
Accounts payable	88,470	85,400
Notes payable	34,180	36,640
Advances from clients	132,010	176,910
Accrued payroll	840	700
Taxes payable	780	-2,370
Accrued expenses	0	16,260
Other accounts payable	700	20
Other current liabilities	16,140	1,100
Dividends payable	0	270
Dividend receivable	0	0
	------------------	------------------
Current liabilities	315,920	357,730
Long-term liabilities	0	0
	------------------	------------------
Total liabilities	315,920	357,730
Equities	85,490	86,890
	------------------	------------------
Total liabilities & equities	401,410	444,620
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2012 (audited)	Jan. 1 to Jun. 30, 2013
Turnover	1,009,290	460,170
Cost of goods sold	953,820	510,470
Taxes and additional of main operations	320	60
Sales expense	27,380	12,450
Management expense	17,440	8,880
Finance expense	770	100
Non-operating income	210	0
Non-operating expense	100	60
Other operating income	8,540	77,950
Profit before tax	18,210	6,100
Less: profit tax	4,890	1,530
Profits	13,320	4,580

Important Ratios

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

	As of Dec. 31, 2012	As of Jun. 30, 2013
*Current ratio	1.18	1.16
*Quick ratio	1.11	1.09
*Liabilities to assets	0.79	0.80
*Net profit margin (%)	1.32	1.00
*Return on total assets (%)	3.32	1.03
*Inventory /Turnover ×365	7days	/
*Accounts receivable/Turnover ×365	82days	/
*Turnover/Total assets	2.51	1.03
* Cost of goods sold/Turnover	0.95	1.11

PROFITABILITY: AVERAGE

l The turnover of SC appears good in 2012 and fairly good in the 1^st half of 2013.

l SC’s net profit margin is average.

l SC’s return on total assets is average.

l SC’s cost of goods sold is fairly high in 2012 but HIGH in the 1^st half of 2013, comparing with its turnover.

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 average.

l The accounts receivable of SC appears large.

l SC’s short-term loan appears average.

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

LEVERAGE: FAIR

l The debt ratio of SC is fairly high.

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 accounts receivable could be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.20
UK Pound	1	Rs.101.68
Euro	1	Rs.83.55

INFORMATION DETAILS

Report Prepared by :

NNA

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