MIRA INFORM REPORT

Report No. :	312872
Report Date :	17.03.2015

IDENTIFICATION DETAILS

Name :	SINOPHARM WEIQIDA PHARMACEUTICAL CO., LTD.

Registered Office :	First Medical Zone, Economic And Technological Development Zone, Datong, Shanxi Province, 037300 Pr China

Country :	China

Financials (as on) :	31.12.2011

Date of Incorporation :	30.09.2002

Com. Reg. No.:	140200400001754

Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise

Line of Business :	· Manufacturing and selling powder-injection within state limits. · Subject is engaged in manufacturing and selling active pharmaceutical ingredient.

No of Employees :	3,200

RATING & COMMENTS

MIRA’s Rating :

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. 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 and expanded 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 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. 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.

Source : CIA

Company Name & address

SINOPHARM WEIQIDA PHARMACEUTICAL CO., LTD.

FIRST MEDICAL ZONE, ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE, DATONG, SHANXI PROVINCE, 037300 PR CHINA

TEL: 86 (0) 352-5378888/7698888

FAX: 86 (0) 352-5328556-8812/7695555

***Note: SC’s headquarters address should be the heading one, while SC’s Beijing Branch locates in the (Room No 303-1, Zhuoming Plaza, Bld No 1, No 6 Yuan Jianhua South Road, Chaoyang District Beijing China).

EXECUTIVE SUMMARY

Date of Registration : SEPtember 30, 2002

REGISTRATION NO. : 140200400001754

LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE

CHIEF EXECUTIVE : guo yimin (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 593,939,394

staff : 3,200

BUSINESS CATEGORY : MANUFACTURING & TRADING

Revenue : CNY 1,864,560,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 1,184,530,000 (AS OF DEC. 31, 2013)

WEBSITE : www.weiqida.com

E-MAIL : marketing@weiqida.com

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.13 = 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 Chinese-foreign equity joint venture enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 140200400001754 on September 30, 2002.

SC’s Organization Code Certificate No.: 73402633-0

SC’s Tax No.: 140216734026330

SC’s Customs Registration No.: 1402940020

SC’s registered capital: CNY 593,939,394

SC’s paid-in capital: CNY 593,939,394

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2011	Company Name	Shanxi Weiqida Pharmaceutical Co., Ltd.	Sinopharm Weiqida Pharmaceutical Co., Ltd.

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

Name of Shareholder (s)	% of Shareholding
China National Pharmaceutical Industry Corporation Limited	67
Allwin Biotrade Inc. (B.V.I.)	33

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Guo Yimin
General Manager	Han Yanlin

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

China National Pharmaceutical Industry Corporation Limited 67

Allwin Biotrade Inc. (B.V.I.) 33

China National Pharmaceutical Industry Corporation Limited

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

China National Pharmaceutical Industry Corporation Limited (abbreviated as CNPIC), a subsidiary of China National Pharmaceutical Group Corporation (abbreviated as SINOPHARM), is an economic entity of R & D, production, trade and investment.

Date of Registration: December 18, 1986

Registration No.: 100000000005489

Legal Form: Limited Liabilities Company

Chief Executive: Guo Yimin

Registered Capital: CNY 955,610,000

MANAGEMENT

Guo Yimin, Legal Representative and Chairman

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

Gender: M

Age: 51

ID# 23010219630703161X

Qualification: University

Working experience (s):

At present, working in SC as legal representative and chairman

Also working in China National Pharmaceutical Industry Corporation Limited as legal representative

Han Yanlin, General Manager

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

Gender: M

Age: 51

ID # 140202196303293034

Qualification: University

Working experience (s):

At present, working in SC as general manager

Also working in Sinopharm Datong Weiqida Zhongkang Pharmaceutical Co., Ltd. as legal representative, and as principal in Sinopharm Weiqida Pharmaceutical Co., Ltd. Beijing Branch

BUSINESS OPERATION

SC’s registered business scope includes manufacturing and selling powder-injection within state limits.

SC is mainly engaged in manufacturing and selling active pharmaceutical ingredient.

SC’s products mainly include: mezlocillin Sodium, Cefadroxil, Cefotaxime Sodium (sterile), etc.

SC sources its materials 90% from domestic market, and 10% from overseas market., mainly Hong Kong SC sells 75% of its products in domestic market, and 25% to overseas market, mainly India, etc.

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.

Staff & Office:

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

SC is known to have approx. 3,200 staff at present.

SC owns an area as its operating office and factory, but the detailed information is unknown.

RELATED COMPANY

SC is known to have a subsidiary and a branch at present,

Sinopharm Datong Weiqida Zhongkang Pharmaceutical Co., Ltd.

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

Date of Registration: September 20, 2001

Registration No.: 140200400001682

Legal Form: Chinese-Foreign Equity Joint Venture Enterprise

Legal Representative: Han Yanlin

Sinopharm Weiqida Pharmaceutical Co., Ltd. Beijing Branch

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

Date of Registration: June 29, 2012

Registration No.: 110000450209553

Legal Form: Branch

Principal: Han Yanlin

PAYMENT

Overall payment appraisal: ( ) Excellent ( ) Good (X) Average ( ) 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:

Rural Credit Cooperative Union of Datong, Nanjiao District

AC#: 1100850073986012

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011
Cash	169,820	120,610
Notes receivable	20,570	63,740
Accounts receivable	169,360	201,170
Advances to suppliers	520	21,810
Other receivable	42,170	544,000
Inventory	154,400	179,550
Non-current assets within one year	0	0
Other current assets	0	4,080
	------------------	------------------
Current assets	556,840	1,134,960
Long term investment	19,400	206,220
Fixed assets	126,570	637,700
Construction in progress	1,116,530	1,067,140
Project materials	118,230	87,580
Intangible assets	105,300	28,190
Other non-current assets	193,720	25,060
	------------------	------------------
Total assets	2,236,590	3,186,850
	=============	=============
Short-term loans	280,000	428,000
Notes payable	146,630	204,110
Accounts payable	214,180	252,030
Wages payable	5,810	15,420
Taxes payable	2,200	-7,580
Advances from clients	33,790	25,940
Other payable	92,960	74,400
Other current liabilities	0	669,610
	------------------	------------------
Current liabilities	775,570	1,661,930
Non-current liabilities	462,930	392,190
	------------------	------------------
Total liabilities	1,238,500	2,054,120
Equities	998,090	1,132,730
	------------------	------------------
Total liabilities & equities	2,236,590	3,186,850
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2010	As of Dec. 31, 2011
Revenue	1,208,040	1,431,820
Cost of sales	922,520	1,160,720
Sales expense	30,400	46,820
Management expense	66,120	91,850
Finance expense	31,300	55,100
Asset impairment loss	4,500	3,700
Profit before tax	152,740	159,830
Less: profit tax	38,050	23,980
Profits	114,690	135,850

Financial Summary

Unit: CNY’000	As of Dec. 31, 2012	As of Dec. 31, 2013
Long term investment	186,936	--
Total assets	4,582,024	4,662,690
	-------------	-------------
Long term liabilities	810,132	--
Total liabilities	3,420,965	3,478,160
Equities	1,161,059	1,184,530
	-------------	-------------
Revenue	1,490,540	1,864,560
Profit before tax	36,760	--
Less: profit tax	8,333	--
Profits	28,427	23,500

Important Ratios

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

	As of Dec. 31, 2010	As of Dec. 31, 2011	As of Dec. 31, 2012	As of Dec. 31, 2013
*Current ratio	0.72	0.68	--	--
*Quick ratio	0.52	0.57	--	--
*Liabilities to assets	0.55	0.64	0.75	0.75
*Net profit margin (%)	9.49	9.49	1.91	1.26
*Return on total assets (%)	5.13	4.26	0.62	0.50
*Inventory / Revenue ×365	47 days	46 days	--	--
*Accounts receivable/ Revenue ×365	51 days	51 days	--	--
* Revenue/Total assets	0.54	0.45	0.33	0.40
* Cost of sales / Revenue	0.76	0.81	--	--

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

· The revenue of SC appears good in its line, and it increased year by year.

· SC’s net profit margin is average in 2012 and 2013.

· SC’s return on total assets is average in 2012 and 2013.

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

LIQUIDITY: FAIR

· The current ratio of SC is maintained in a fair level.

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

· 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 loans are in an average level.

· SC’s revenue is in a fair 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 low.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.82
UK Pound	1	Rs.92.83
Euro	1	Rs.66.17

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	NIT

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.