MIRA INFORM REPORT

Report No. :	356625
Report Date :	25.12.2015

IDENTIFICATION DETAILS

Name :	Shandong Sunsine Chemical cO., lTD.

Registered Office :	Economic & Technical Development Area, Shanxian, Heze, Shandong Province, 274300 Pr

Country :	China

Financials (as on) :	30.09.2015

Date of Incorporation :	06.01.1999

Com. Reg. No.:	371700400001756

Legal Form :	Wholly Foreign-Owned Enterprise

Line of Business :	Manufacturing rubber accelerator DCBS, rubber accelerator DPG, rubber accelerator TBBS (NS), vulcanizing agent IS, antioxidant RD, rubber accelerator TMTD, rubber accelerator CBS, rubber accelerator MBTS (DM), rubber antioxidant 4020, rubber antioxidant intermediate RT base, selling the above self-made products.

No. of Employees :	1,600

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
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

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

Shandong Sunsine Chemical cO., lTD.

Economic & technical development area, Shanxian, HEZE,

Shandong province, 274300 PR CHINA

TEL: 86 (0) 530-4686360/4697690/4475002 FAX: 86 (0) 530-4681609

EXECUTIVE SUMMARY

INCORPORATION DATE : JAN. 6, 1999

REGISTRATION NO. : 371700400001756

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. XU CHENGQIU (CHAIRMAN)

STAFF STRENGTH : 1,600

REGISTERED CAPITAL : CNY 350,000,000

BUSINESS LINE : MANUFACTURING AND TRADING

TURNOVER : CNY 1,473,960,000 (JAN. 1 TO SEP. 30, 2015)

EQUITIES : CNY 1,229,590,000 (AS OF SEP. 30, 2015)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly good

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.469 = 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’s detailed address should be the heading one.

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).

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 manufacturing rubber accelerator DCBS, rubber accelerator DPG, rubber accelerator TBBS (NS), vulcanizing agent IS, antioxidant RD, rubber accelerator TMTD, rubber accelerator CBS, rubber accelerator MBTS (DM), rubber antioxidant 4020, rubber antioxidant intermediate RT base, selling the above self-made products.

SC is mainly engaged in manufacturing and selling rubber accelerator, antioxidant.

Mr. Xu Chengqiu is legal representative and chairman of SC at present.

SC is known to have approx. 1,600 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the Economic & Technical Development Area of Shanxian. SC’s employee refused to release the detailed information of the premise.

http://www.sunsine.com/ The website includes the introduction about SC. The design is professional and the content is well organized. At present it is in both Chinese and English versions.

Email: sale@sunsine.com

SC was formerly named as Shandong Shanxian Chemical Co., Ltd.

SC has passed ISO9001, ISO14001, GB/T28001.

SC was honored as Hi-Tech Enterprise, Shandong Credit Enterprise, etc. and Sunsine was honored as Shandong province famous brand.

Organization Code: 169076393

See below for SC as executive party (defendant).

Executed Party	SC
Court	Shanghai First Intermediate People's Court
Date of Case	Oct. 20, 2011
Case Number	(2011) 01373
Claim Amount	RMB 898
Case Status	N/A

Executed Party	SC
Court	Shanxian People's Court
Date of Case	July 1, 2014
Case Number	(2014) 00722
Claim Amount	RMB 79,220
Case Status	N/A

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

China Sunsine Chemical Holdings Ltd. (Singapore) 100

Listed on SGX-ST on 5 July 2007, China Sunsine Chemical Holdings Ltd. (“China Sunsine”) is a leading specialty chemical producer selling accelerators, anti-oxidant, vulcanising agent and anti-scorching agent.

Singapore Business Address: 112 Robinson Road #12-04, Singapore 068902

Tel: (65) 6220 9070

Fax: (65) 6223 9177

Website: http://www.sunsine.com/

Legal Representative and Chairman:

Mr. Xu Chengqiu, born in 1944, he obtained his degree in Rubber Chemical Engineering from Shandong Chemical College in 1966 and he was qualified as senior engineer in 1989. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

Also working in Weifang Sunsine Chemical Co., Ltd. and Shanxian Sunsine Hotel Management Co., Ltd. as legal representative; and in China Sunsine Chemical Holdings Ltd. as executive chairman.

Director and general manager:

Liu Jingfu is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as director and general manager.

Directors:

Xu Jun

Ma Yingqun

Ma Yuebin

Supervisors:

Lv Guizhong

Fan Changling

Huang Zhenfeng

SC is mainly engaged in manufacturing and selling rubber accelerator, antioxidant.

SC’s products mainly include:

Accelerator

Antioxidants

Antioxidants TMQ （RD）|Antioxidants SP| Antioxidants 4020|Antioxidants RT base

Antiscorching agent

Antiscorching agent CTP (PVI)

Insoluble Sulphur

Insoluble Sulphur（IS）|Insoluble Sulphur（HS）|Insoluble Sulphur（HD）

Master Batches

SC sources its materials 95% from domestic market, and 5% from overseas market. SC sells 20% of its products in domestic market, and 80% to overseas market.

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

Note: SC’s management refused to release its main suppliers and clients.

TRADEMARKS & PATENTS

Registration No.	3214313	6127046
Registration Date	Feb. 21, 2004	Feb. 21, 2010
Trademark Design

Subsidiaries:

Weifang Sunsine Chemical Co., Ltd.

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

Registration no.: 370727200003540

Legal representative: Xu Chengqiu

Incorporation date: 2010-10-15

Shanxian Sunsine Hotel Management Co., Ltd.

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

Registration no.: 371722200013146

Legal representative: Xu Chengqiu

Incorporation date: 2013-12-16

Shandong Sheng Tao Chemical Co., Ltd.

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

Registration no.: 371700200024487

Legal representative: Xu Jun

Incorporation date: 2013-08-08

Shanxian Guangshun Heating Co., Ltd.

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

Registration no.: 371722200011270

Legal representative: Xu Xianlei

Incorporation date: 2013-01-29

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 its bank details.

Balance Sheet

Unit: CNY’000

	As of Sep. 30, 2015	As of Dec. 31, 2014
Cash & bank	240,420	109,860
Inventory	126,660	198,900
Accounts receivable	332,730	293,670
Bills receivable	104,920	229,930
Other Accounts receivable	3,580	1,100
Advances to suppliers	0	0
To be apportioned expense	0	0
Other current assets	10	100
	------------------	------------------
Current assets	808,320	833,560
Fixed assets net value	326,860	321,490
Projects under construction	4,360	10,480
Long-term investment	350,000	350,000
Intangible assets	5,990	21,160
Other assets	80	70
	------------------	------------------
Total assets	1,495,610	1,536,760
	=============	=============
Short loans	127,230	258,000
Accounts payable	-41,560	-34,290
Advance from customers	0	0
Other Accounts payable	79,400	86,860
Notes payable	18,000	40,000
Accrued payroll	67,550	27,920
Taxes payable	16,280	28,420
Withdraw the expenses in advance	0	0
Other current liabilities	0	0
	------------------	------------------
Current liabilities	266,900	406,910
Long term liabilities	-880	-710
Other liabilities	0	0
	------------------	------------------
Total liabilities	266,020	406,200
Equities	1,229,590	1,130,560
	------------------	------------------
Total liabilities & equities	1,495,610	1,536,760
	=============	=============

Income Statement

Unit: CNY’000

	Jan. 1 to Sep. 30, 2015	As of Dec. 31, 2014
Turnover	1,473,960	1,991,620
Cost of goods sold	1,134,250	1,539,570
Sales expense	41,170	48,500
Management expense	106,990	94,470
Finance expense	1,960	18,020
Profit before tax	181,420	276,570
Less: profit tax	45,360	69,140
Profits	136,060	207,430

Important Ratios

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

	As of Sep. 30, 2015	As of Dec. 31, 2014
*Current ratio	3.03	2.05
*Quick ratio	2.55	1.56
*Liabilities to assets	0.18	0.26
*Net profit margin (%)	9.23	10.42
*Return on total assets (%)	9.10	13.50
*Inventory /Turnover ×365	/	37 days
*Accounts receivable/Turnover ×365	/	54 days
*Turnover/Total assets	0.99	1.30
* Cost of goods sold/Turnover	0.77	0.77

PROFITABILITY: FAIRLY GOOD

The turnover of SC appears good in its line.

SC’s net profit margin is fairly good.

SC’s return on total assets is fairly good.

SC’s cost of goods sold is average, comparing with its turnover.

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a fairly good level.

SC’s quick ratio is maintained in a normal level in 2014 and fairly good in the first three quarters of 2015.

The inventory of SC is maintained in an average level.

The accounts receivable of SC is maintained in an average level.

SC’s short-term loan is average.

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

LEVERAGE: FAIRLY GOOD

The debt ratio of SC is low.

The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Fairly good.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.20
UK Pound	1	Rs.98.30
Euro	1	Rs.72.41
CNY	1	Rs.10.23

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

INFORMATION DETAILS

Analysis Done by :	KAR

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.