MIRA INFORM REPORT

Report No. :	337914
Report Date :	26.08.2015

IDENTIFICATION DETAILS

Name :	chang chun chemical (jiangsu) co., ltd.
Registered Office :	Changchun Road, Riverside Industrial Park, Changshu Economic Development Zone, Jiangsu Province, 215513 Pr
Country :	China
Financials (as on) :	31.12.2014
Date of Incorporation :	30.07.2002
Com. Reg. No.:	320000400000655
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Subject is engaged in permit business items: the production and storage of dangerous chemicals, port operators (operating permit by the port operating range); dangerous chemicals wholesale and retail (according to hazard chemicals business license on the scope of operations). General business items: manufacturing and processing polybutylene terephthalate resin, adhesive (epoxy), electronic materials (copper), bisphenol A, the other with high-tech electronic and paper chemicals, engineering plastics and plastic alloys , ethylene downstream products derivatives (polyvinyl acetate emulsion slurry, polyvinyl alcohol), sodium chloride, semiconductor components for materials (these products do not involving in hazardous chemicals), provide technical services related to production for and advisory services; engaged in the construction of cogeneration power plants, operation; wholesale, storage, import and export related products other than hazardous chemicals, commission agency (excluding auction); own plant and tangible personal property leasing business.
No. of Employees :	1,493

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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. In 2014 the People’s Bank of China (PBOC) doubled the daily trading band within which the RMB is permitted to fluctuate. 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 2014 more than 274 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.

Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.

Source : CIA

Company Name & address

chang chun chemical (jiangsu) co., ltd.

changchun road, riverside industrial park, changshu economic development zone, jiangsu PROVINCE, 215513 PR CHINA

TEL: 86 (0) 512-52648000 FAX: 86 (0) 512-52649000

EXECUTIVE SUMMARY

INCORPORATION DATE : july 30, 2002

REGISTRATION NO. : 320000400000655

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. liao longxing (CHAIRMAN)

STAFF STRENGTH : 1,493

REGISTERED CAPITAL : usd 664,750,000

BUSINESS LINE : manufacturing & selling

TURNOVER : CNY 11,229,260,000 (AS OF DEC. 31, 2014)

EQUITIES : CNY 4,622,850,000 (AS OF DEC. 31, 2014)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.40 = 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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on July 30, 2002.

Company Status: Wholly foreign-owned enterprise

This form of business in PR China is defined as a legal person. It is a limited co. established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investor may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.

SC’s registered business scope includes: permit business items: the production and storage of dangerous chemicals, port operators (operating permit by the port operating range); dangerous chemicals wholesale and retail (according to hazard chemicals business license on the scope of operations). General business items: manufacturing and processing polybutylene terephthalate resin, adhesive (epoxy), electronic materials (copper), bisphenol A, the other with high-tech electronic and paper chemicals, engineering plastics and plastic alloys , ethylene downstream products derivatives (polyvinyl acetate emulsion slurry, polyvinyl alcohol), sodium chloride, semiconductor components for materials (these products do not involving in hazardous chemicals), provide technical services related to production for and advisory services; engaged in the construction of cogeneration power plants, operation; wholesale, storage, import and export related products other than hazardous chemicals, commission agency (excluding auction); own plant and tangible personal property leasing business.

SC is mainly engaged in manufacturing and selling chemical products.

Mr. Liao Longxing has been legal representative and chairman of SC since 2002.

SC is known to have approx. 1,493 employees 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 Changshu. Our checks reveal that SC owns the total premise about 980,000 square meters.

http://www.ccp.com.tw The website belongs to Changchun Group and it includes the information on SC and its related companies. The design is professional and the content is well organized. At present it is in Chinese, English and Japanese versions.

Email: stsai@ccp.com.tw

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
Unknown	Registration No.	000263	present one
2003-4-1	Registered Capital	usd 38,000,000	usd 118,000,000
	Shareholders & % of shareholding	Chang Chun (Singapore) Pte. Ltd. 100%	Chang Chun (Singapore) Pte. 32.20% Taiwan Chang Chun Plastics Co., Ltd. 33.90% Taiwan Chang Chun Petrochemical Co., Ltd. 33.90%
2005-1-27	Shareholders & % of shareholding	Chang Chun (Singapore) Co., Ltd. 32.20% Taiwan Chang Chun Plastics Co., Ltd. 33.90% Taiwan Chang Chun Petrochemical Co., Ltd. 33.90%	Taiwan Chang Chun Plastics Co., Ltd. 50% Taiwan Chang Chun Petrochemical Co., Ltd. 50%
2007-8-29	Registered Capital	usd 118,000,000	usd 132,000,000
2007-12-27	Registered Capital	usd 132,000,000	usd 134,500,000
2008-07-31	Registered Capital	usd 134,500,000	usd 157,000,000
2009-08-19	Registered Capital	usd 157,000,000	usd 202,000,000
2009-11-03	Registered Capital	usd 202,000,000	usd 247,000,000
2010-03-23	Registered Capital	usd 247,000,000	usd 283,500,000
2010-10-19	Registered Capital	usd 283,500,000	USD 341,500,000
2010-11-23	Registered Capital	USD 341,500,000	USD 426,500,000
2010-12-07	Registered Capital	USD 426,500,000	USD 482,500,000
2011-12-12	Registered Capital	USD 482,500,000	USD 593,750,000
2012-04-23	Registered Capital	USD 593,750,000	USD 652,750,000
2012-09-13	Registered Capital	USD 652,750,000	Present amount

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

Organization Code: 73940381X

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Taiwan Chang Chun Plastics Co., Ltd. 50

Taiwan Chang Chun Petrochemical Co., Ltd. 50

Taiwan Chang Chun Plastics Co., Ltd.

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

Registered no.: 091036871

Add: 301 Songkiang Road, 7th Floor, Taipei 104 Taiwan

Tel: 886-2- 2500-1800

Fax: 886-2- 2501-8018

http://www.ccp.com.tw/homepage.nsf/pf/ccp?OpenDocument

Taiwan Chang Chun Petrochemical Co., Ltd.

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

Registered no.: 002621

Add: 301 Songkiang Road, 7th Floor, Taipei 104 Taiwan

Tel: 886-2-2500-1800

Fax: 886-2-2501-8018

http://www.ccp.com.tw/ (The website belongs to Changchun Group)

Legal representative and Chairman:

Mr. Liao Longxing, Passport No.: A102461315, with university education, he is currently responsible for the overall management of SC.

Working Experience(s):

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

Also working in Changlian Chemical (Yangzhou) Co., Ltd. and Chang Chun Plastic (Changshu) Co., Ltd. as legal representative

General manager:

Zhang Zihua, ID# B120765960, is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager.

Also working in Changshu Yongchun Chemical Trade Co., Ltd. (in Chinese pinyin) as legal representative, and in Chang Chun Chemical (Jiangsu) Co., Ltd. Changsha Branch as principal.

Directors:

Chen Xianzhang Passport No.: A10237098

Lin Xiandong Passport No.: A104295453

Zheng Zheng Passport No.: A122939805

Chen Rongzong Passport No.: B100456200

Huang Kunyuan Passport No.: A122962500

Lin Shuhong Passport No.: 131975309

Zheng Xinyi 211938972

Zhang Zixiong 2210115609

Supervisors:

Su Shiguang Passport No.: E101435799

Du Shaoming

SC is mainly engaged in manufacturing and selling chemical products.

SC’s products mainly include:

Semiconductor packaging and plastic

Dry Film Photoresist

CCL

Epoxy

Polyvinyl alcohol

Polyvinyl butyral

Polyvinyl acetate

High quality butyl acetate

Epoxidized soybean oil

Antioxidants

Artificial resin

SC sources its materials 70% from domestic market, and 30% from overseas market, mainly Southeast Asian market. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly USA and Europe.

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

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

Trademark & Patents

No record

Changlian Chemical (Yangzhou) Co., Ltd. (Literal translation)

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

Registration No.: 320000400005101

Incorporation Date: 2011-12-05

Legal representative: Liao Longxing

Chang Chun Plastic (Changshu) Co., Ltd. (Literal translation)

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

Registration No.: 320581400000988

Incorporation Date: 2003-05-19

Legal representative: Liao Longxing

Subsidiary:

Changshu Yongchun Chemical Trade Co., Ltd. (in Chinese pinyin)

Registration No.: 320581000332428

Legal representative: Zhang Zihua

Incorporation Date: 2013-12-13

Branch:

Chang Chun Chemical (Jiangsu) Co., Ltd. Changsha Branch

Registration No.: 430100500012253

Incorporation Date: 2012-11-2

Principal: Zhang Zihua

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 Changshu Sub-Branch

AC#: N/A

Relationship: Normal.

Financial Summary

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

Unit: CNY’000

	As of Dec. 31, 2014
Total liabilities	5,859,860
Equities	4,622,850
	--------------
Total liabilities & equities	10,482,710
	=========
Turnover	11,229,260
Profits	85,130

Note: SC’s management refused to release its detailed financial reports.

Important Ratios

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

	as of Dec. 31, 2014
*Liabilities to assets	0.56
*Net profit margin (%)	0.76
*Return on total assets (%)	0.81
*Turnover/Total assets	1.07

PROFITABILITY: AVERAGE

The turnover of SC appears good in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

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

LEVERAGE: AVERAGE

The debt ratio of SC is average.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.71
UK Pound	1	Rs.105.10
Euro	1	Rs.77.11

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

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.