MIRA INFORM REPORT

Report Date :

15.05.2014

IDENTIFICATION DETAILS

Name :	CSPC CENWAY (TIANJIN) PHARMACEUTICALS CO., LTD.
Registered Office :	No. 26 Huashan Road, Hangu Modern Industry Zone, Tianjin Development Zone, Binhai New Zone, Tianjin, 300480 Pr
Country :	China
Date of Incorporation :	03.06.2009
Com. Reg. No.:	120191000045498
Legal Form :	Limited Liabilities Company
Line of Business :	Engaged in researching, developing and selling pharm intermediate, organochlorine series products; selling chemical products (excluding hazardous chemicals and poisonous chemicals); importing and exporting commodities and technology; related technology consultant services; manufacturing cephalosporin intermediate; manufacturing raw material medicine (cefditoren pivoxil) (it is valid until Jan. 3, 2015); in accordance with the related regulations and license.
No of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
China	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 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. Debt overhang from its credit-fueled stimulus program in 2008-10, particularly among local governments, and soaring property prices challenge policy makers currently. Their efforts to cool a red-hot property market in 2011 appear to have curbed inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future. 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 & Address

CSPC CENWAY (TIANJIN) PHARMACEUTICALS CO., LTD.

NO. 26 huashan road, hangu modern industry zone, TIANJIN DEVELOPMENT ZONE, BINHAI NEW ZONE, TIANJIN, 300480 PR CHINA

TEL: 86 (0) 22-67162000 FAX: N/A

EXECUTIVE SUMMARY

INCORPORATION DATE : JUNE 3, 2009

REGISTRATION NO. : 120191000045498

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : Ms. Tian yumiao (CHAIRMAN)

STAFF STRENGTH : N/A

REGISTERED CAPITAL : CNY 155,000,000

BUSINESS LINE : MANUFACTURING, R& D

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : Unknown

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2338 = 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

Note: SC also has another plant at No. 18, Taishan Road, Teda Chemical Development Zone, Tianjin

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 June 3, 2009.

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 researching, developing and selling pharm intermediate, organochlorine series products; selling chemical products (excluding hazardous chemicals and poisonous chemicals); importing and exporting commodities and technology; related technology consultant services; manufacturing cephalosporin intermediate; manufacturing raw material medicine (cefditoren pivoxil) (it is valid until Jan. 3, 2015); in accordance with the related regulations and license.

SC is mainly engaged in researching, developing, manufacturing and selling cephalosporin intermediate, pharm intermediate and pharmaceuticals products.

Ms. Tian Yumiao is legal representative and chairman of SC at present.

SC’s employee’s information is unavailable at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the development zone of Tianjin. Our checks reveal that SC owns the total premise, but SC’s accountant refused to release the gross area.

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

Email: info@cenway.com

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

SC changed its shareholders and legal representative, but we could not confirm the former shareholders and legal representative.

Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.

Organization Code: 687743694

MAIN SHAREHOLDERS:

Name % of Shareholding

Inner Mongolia Changsheng Pharmaceuticals Co., Ltd. 90

Cenway Pharmaceuticals Co., Ltd. 10

Inner Mongolia Changsheng Pharmaceuticals Co., Ltd.

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

Incorporation Date: 2003-10-17

Registration No.: 150100400000023

Legal representative: Lu Hua

Tel: 86 (0) 471-8660666/8660624

Cenway Pharmaceuticals Co., Ltd.

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

Cenway Pharmaceuticals Co., Ltd. was established in 2002. It is an international company, mainly engages in pharmaceutical raw material business.

Incorporation Date: 2002-04-24

Registration No.: 120000400018466

Legal representative: Zhu Dequan

Legal Representative and Chairman:

Ms. Tian Yumiao, born in 1965, with Master’s degree, she is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

General Manager:

Yang Kai is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager.

Directors:

Zhu Dequan

Chen Xuejun

Supervisor:

Liu Fengfeng

SC is mainly engaged in researching, developing, manufacturing and selling cephalosporin intermediate, pharm intermediate and pharmaceuticals products.

Main Products: cephalosporin intermediate

SC sources its materials 80% from domestic market, and 20% from overseas market. SC sells 30% of its products in domestic market, and 70% 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 declined to release its major suppliers and clients.

According to the website http://www.cenway.com/

Zhejiang Cenway New Synthetic Materials Co., Ltd.

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

Incorporation Date: 2008-07-15

Registration No.: 330405000005077

Legal representative: Zhu Dequan

Shanghai Cenway International Trading Co., Ltd.

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

Incorporation Date: 2002-12-05

Registration No.: 310115000724428

Legal representative: Wang Qian

Cenway Technologies, Ltd.

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

Incorporation Date: 2005-12-28

Registration No.: 110000009244929

Legal representative: Zhu Dequan

Website: http://www.cenway.com/

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.

SC’s bank details are not available at present.

SC refused to release the financial information.

SC has developed for 5 years. Due to lack of financial statements, we are unable to determine the maximum credit limit for SC. Taking into consideration of good background, credit up to moderate amount appears acceptable.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.88
UK Pound	1	Rs.100.98
Euro	1	Rs.82.40

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	MNL

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.