MIRA INFORM REPORT

Report No. :	354280
Report Date :	09.12.2015

IDENTIFICATION DETAILS

Name :	SHANGHAI KRUPP STAINLESS CO., LTD.
Registered Office :	No. 21, Tongyao Road, Pudong New District, Shanghai, 200126 Pr
Country :	China
Date of Incorporation :	07.04.1998
Com. Reg. No.:	310000400191427
Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise
Line of Business :	· Engaged in manufacturing stainless steels and its products · Engaged in Selling self-made products and providing related technology consulting, technology services, and after-sale services (if the trade of the goods is governed by the quota or special rule, relevant regulations shall be followed) · Subject product ranges includes cold rolled wide strip, slit strips and sheets as well as austenitic and ferrite grades
No of Employees :	Not Available

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. 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 for the first time in modern history. Still, China's per capita income is below the world average.

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 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 also 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

SHANGHAI KRUPP STAINLESS Co., Ltd.

NO. 21, TONGYAO ROAD, pudong new district, shanghai, 200126 PR CHINA.

TEL: 86 (0) 21-38874887 FAX: 86 (0) 21-68702025

EXECUTIVE SUMMARY

INCORPORATION DATE : april 7, 1998

REGISTRATION NO. : 310000400191427

REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE

CHIEF EXECUTIVE : MR. CUI JIAN (CHAIRMAN)

STAFF STRENGTH : N/A

REGISTERED CAPITAL : usd 428,900,000

BUSINESS LINE : MANUFACTURING AND tRADING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : steady

GENERAL REPUTATION : well-known

EXCHANGE RATE : CNY 6.23 = 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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on April 7, 1998.

Company Status: Chinese-foreign equity joint venture enterprise

This form of business in PR China is defined as a legal person. It is a limited co. jointly invested by one or more foreign companies and one or more PR China controlled companies within the territories of PR China according to a certain proportion of capital investment. The investing parties exercise business management, share profits and bear all risks and liabilities of the co. together. The equity joint venture law requires that foreign party contribute not less than 25% of the registered capital, with no maximum. The joint venture usually have a limited duration of 10 to 50 years. Enterprise with large investment, long construction periods, low investment returns, introducing of advanced technology & advanced technology products which have good competition position in international market may extend beyond the 50 years limit.

SC’s registered business scope includes manufacturing stainless steels and its products, selling self-made products and providing related technology consulting, technology services, and after-sale services (if the trade of the goods is governed by the quota or special rule, relevant regulations shall be followed); leasing its houses at the address of No. 21, Tongyao Road, Pudong New Area, Shanghai (with permit if needed).

SC is mainly engaged in manufacturing and selling stainless products.

Mr. Cui Jian is legal representative and chairman of SC at present.

SC’s management declined to disclose its staff strength.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Shanghai. Our checks reveal that SC owns the total premise about 424,000 square meters.

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

Email: john.wu@skschina.com ; billy.tan@skschina.com

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2002	Legal representative	Chen Haisheng	Hu Xuefa
2010-1	Legal representative	Hu Xuefa	Lou Dingbo
Unspecified	Shareholder’s name	Shanghai Pudong Steel Co., Ltd.	Baosteel Group Shanghai Pudong Iron & Steel Co., Ltd. 40
	Registration No.	024761	310000400191427
	Legal representative	Lou Dingbo	present one
	Shareholder’s name	ThyssenKrupp Nirosta GmbH (Germany)	Outokumpu Nirosta GmbH (Germany)

SC’s quality system meets the international standards of ISO 9001.

Organization code: 607391132

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Outokumpu Nirosta GmbH (Germany) 60

Baosteel Group Shanghai Pudong Iron & Steel Co., Ltd. 40

Outokumpu Nirosta GmbH (Germany)

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

Outokumpu Nirosta is a business segment of Outokumpu, headquartered in Krefeld, Germany. It produces flats of stainless steel. Formerly, it was named ThyssenKrupp Nirosta and part of ThyssenKrupp AG.

Baosteel Group Shanghai Pudong Iron & Steel Co., Ltd.

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

Incorporation date: May 23, 1996

Registration no.: 310115000334789

Registered capital: CNY 3,144,736,700

Legal representative: Zhu Hua

Legal form: One-person Limited Liability Company

Legal representative and chairman:

Mr. Cui Jian is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as chairman and legal representative

Vice-chairman:

Mika Ilkka Seitovirta is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice-chairman

General manager:

Lu Hui is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager

Directors:

Lu Hui

Reinhard Florey

Zhu Wenhua

SC is mainly engaged in manufacturing and selling stainless products.

SC’s products mainly include cold rolled wide strip, slit strips and sheets as well as austenitic and ferrite grades

SC sources its materials 50% from domestic market, and 50% from overseas market, mainly Germany and Italy. SC sells 90% of its products in domestic market, and 10% 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 customer and supplier details.

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.

Industrial & Commercial Bank of China Shanghai Branch No. 2 Office

AC#：021907-1001190709016261997

Relationship: Normal.

SC’s management refused to release any financial information.

SC was established in 1998, taking into consideration of SC’s general performance, reputation as well as market conditions we would rate SC as an average credit risk company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.80
UK Pound	1	Rs.100.49
Euro	1	Rs.72.52
CNY	1	Rs. 10.39

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Report Prepared by :

ASH

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.