MIRA INFORM REPORT

Report No. :	307494
Report Date :	09.02.2015

IDENTIFICATION DETAILS

Name :	XI’AN UNIQUE ELECTRONIC AND CHEMICAL CO., LTD.
Registered Office :	Room 1703, B Building, West Electronic Zone, No. 18 Dianzi 1^st Road Xi’an City, Shannxi Province 710065 PR
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	16.09.1999
Com. Reg. No.:	610116100002717
Legal Form :	Limited Liabilities Company
Line of Business :	Engaged in manufacturing and selling fine chemicals, precision electronic components.
No. of Employees	185 (Approximately)

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
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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 and address

XI’AN UNIQUE ELECTRONIC AND CHEMICAL CO., LTD.

ROOM 1703, B BUILDING, WEST ELECTRONIC ZONE, NO. 18 DIANZI 1^ST ROAD

XI’AN CITY, SHANNXI PROVINCE 710065 PR CHINA

TEL: 86 (0) 29-88238008

FAX: 86 (0) 29-88249438

EXECUTIVE SUMMARY

Date of Registration : SEPTEMBER 16, 1999

REGISTRATION NO. : 610116100002717

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : SUN KANGJI (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 5,000,000

staff : 185 (Approximately)

BUSINESS CATEGORY : manufacturing & TRADING

Revenue : CNY 34,731,000 (AS OF DEC. 31, 2012)

EQUITIES : CNY 15,673,000 (AS OF DEC. 31, 2012)

WEBSITE : www.china-unique.com

E-MAIL : sales@china-unique.com

PAYMENT : No Complaints

MARKET CONDITION : average

FINANCIAL CONDITION : FAIRly stable

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.21 = USD 1

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 610116100002717 on September 16, 1999.

SC’s Organization Code Certificate No.: 710163947

SC’s registered capital: CNY 5,000,000

SC’s paid-in capital: CNY 5,000,000

Registration Change Record:-

No significant changes of SC have been noted in SAIC since its incorporation.

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)	% of Shareholding
Sun Kangji	64.0
Gao Suxia	15.8
Other Shareholders	20.2

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Sun Kangji
Director	Gao Suxia
	Sun Kangyi
	Sun Weiguo
	Wang Erhu

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Sun Kangji 64.0

Gao Suxia 15.8

Other Shareholders 20.2

MANAGEMENT

Sun Kangji, Legal Representative, Chairman and General Manager

--------------------------------------------------------------------------------------------------

Ø Gender: M

Ø Qualification: University

Ø Working experience (s):

At present, working in SC as legal representative, chairman and general manager

Also working in Xi’an Maige Electromagnetic Technology Co., Ltd. as legal representative

Directors:

--------------

Gao Suxia

Sun Kangyi

Sun Weiguo

Wang Erhu

BUSINESS OPERATION

SC’s registered business scope includes selling fine chemicals, precision display devices, smart security facilities and related electronic products, manufacturing and selling LED packaging, high-power LED optical energy-saving products and lighting accessories, operating and acting as an agent of importing and exporting various kinds of commodities and technology, excluding the goods forbidden by the government.

SC is mainly engaged in manufacturing and selling fine chemicals, precision electronic components.

Acting Brand: BOROGARD ZB

SC’s products mainly include: glass beads UGK (KOVAR), UGW (Tungsten) glass tube UG49, Boron Oxide (B2O3), mask pin, and no-inner disk anode buttons.

SC sources its materials 20% from domestic market, and 80% from overseas market, mainly USA. SC sells 80% of its products in domestic market, and 20% to overseas market, mainly Southeast Asian market.

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.

*Major Customer:

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

Allied Mineral Products, Inc.

*Major Supplier:

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

U.S. Borax Inc.

Staff & Office:

--------------------------

SC is known to have approx. 185 staff at present.

SC rents an area as its operating office, and SC’s factory located in Yijing Industrial Zone, Chang’an District, Xi’an, but the detailed information is unknown.

RELATED COMPANY

n Xi’an Maige Electromagnetic Technology Co., Ltd.

---------------------------------------------------------------------

Registration No.: 610116100010215

Legal Representative: Sun Kangji

Registered Capital: CNY 3,000,000

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) No Complaints ( ) Fair ( ) Poor ( ) Not yet be 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.

BANKING

Basic Bank:

China Merchants Bank

AC#: 029900061732502

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011
Cash	11,470	13,476
Accounts receivable	9,250	21,635
Advances to suppliers	0	0
Other receivable	1,600	890
Inventory	18,800	24,168
Non-current assets within one year	0	0
Other current assets	12,590	9,770
	------------------	------------------
Current assets	53,710	69,939
Fixed assets	10,010	9,834
Construction in progress	0	0
Intangible assets	0	0
Long-term prepaid expenses	0	0
Deferred income tax assets	0	0
Other non-current assets	820	791
	------------------	------------------
Total assets	64,540	80,564
	=============	=============
Short-term loans	10,350	9,282
Notes payable	0	0
Accounts payable	28,080	35,759
Wages payable	0	0
Advances from clients	0	0
Other payable	9,600	16,743
Other current liabilities	3,680	4,357
	------------------	------------------
Current liabilities	51,710	66,141
Non-current liabilities	50	45
	------------------	------------------
Total liabilities	51,760	66,186
Equities	12,780	14,378
	------------------	------------------
Total liabilities & equities	64,540	80,564
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011
Revenue	56,600	66,765
Cost of sales	51,390	58,086
Sales expense	2,230	2,563
Management expense	3,340	3,947
Finance expense	320	80
Profit before tax	1,280	2,054
Less: profit tax	40	180
Profits	1,240	1,874

Financial Summary

Unit: CNY’000	As of Dec. 31, 2012
Current assets	41,070
	-------------
Total assets	51,599
	-------------
Current liabilities	35,881
Non-current liabilities	45
	-------------
Total liabilities	35,926
Equities	15,673
	-------------
Revenue	34,731
Profit before tax	1,463
Less: profit tax	0
Profits	1,463

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2011	As of Dec. 31, 2012
*Current ratio	1.04	1.06	1.14
*Quick ratio	0.68	0.69	--
*Liabilities to assets	0.80	0.82	0.70
*Net profit margin (%)	2.19	2.81	4.21
*Return on total assets (%)	1.92	2.33	2.84
*Inventory / Revenue ×365	122 days	133 days	--
*Accounts receivable / Revenue ×365	60 days	119 days	--
*Revenue / Total assets	0.88	0.83	0.67
*Cost of sales / Revenue	0.91	0.87	--

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

l The revenue of SC appears average, and it decreased in 2012.

l SC’s net profit margin is average in three years.

l SC’s return on total assets is average in three years.

l SC’s cost of sales is average, comparing with its revenue.

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a normal level.

l SC’s quick ratio is maintained in a fair level.

l The inventory of SC appears large.

l The accounts receivable of SC appears large.

l The short-term loans of SC appear average.

l SC’s revenue is in a fair level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is average.

l The risk for SC to go bankrupt is above average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.74
UK Pound	1	Rs.94.65
Euro	1	Rs.70.79

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	MNL

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