MIRA INFORM REPORT

Report No. :	321225
Report Date :	08.05.2015

IDENTIFICATION DETAILS

Name :	ASIA SYMBOL (Shandong) Pulp And Paper Co., Ltd.
Registered Office :	No. 369 Beijing Road, Economic Development Zone, Rizhao, Shandong Province, 276826 Pr
Country :	China
Financials (as on) :	31.12.2014
Date of Incorporation :	17.08.2005
Com. Reg. No.:	371100400002691
Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise
Line of Business :	Manufacturing and Selling of Pulp and Paper.
No. of Employees :	2,000

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 :	Slow but correct
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	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 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.

Source : CIA

Company Name and address

ASIA SYMBOL (Shandong) Pulp And Paper Co., Ltd.

NO. 369 BEIJING ROAD, ECONOMIC DEVELOPMENT ZONE,

RIZHAO, SHANDONG PROVINCE, 276826 PR CHINA

TEL: 86 (0) 633-3361212/3361191/3369048/3369052 FAX: 86 (0) 633-3369069

EXECUTIVE SUMMARY

INCORPORATION DATE : aug. 17, 2005

REGISTRATION NO. : 371100400002691

REGISTERED LEGAL FORM : Chinese-foreign equity joint venture enterprise

CHIEF EXECUTIVE : Mr. LU JIAN ZHONG (legal representative)

STAFF STRENGTH : 2,000

REGISTERED CAPITAL : CNY 5,271,070,000

BUSINESS LINE : TRADING and manufacturing

TURNOVER : CNY 769,630,000 (Unaudited, AS OF DEC. 31, 2014)

EQUITIES : CNY 5,729,110,000 (Unaudited, AS OF DEC. 31, 2014)

PAYMENT : AVERAGE

MARKET CONDITION : competitive

FINANCIAL CONDITION : fairly STABLE

OPERATIONAL TREND : FAIRLY steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2013 = 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 Aug. 17, 2005.

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 investing parties are free to agree on method of profit distribution and liabilities bearing according to the proportion of capital investment. Each investing parties contributes funds, tangible assets, technology & etc. The board of directors excises the high authority. The joint venture usually has 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 that have good competition position in international market may extend beyond the 50 years limit.

SC’s registered business scope includes manufacture of pulp, paper, paperboard and related products, sales of own products; import, export wholesale business of pulp, paper, paperboard, dissolving pulp and other paper products; power grid and power online sales; afforestation; port facilities management; loading and unloading in the port zone, warehousing; ship port service business: providing shore power for ship; providing related technology consulting, technology training, technology transfer (if needed operating according to the regulations; if needed with permit)

SC is mainly engaged in manufacturing and selling pulp and paper.

Mr. Lu Jian Zhong is legal representative, chairman of SC at present.

SC is known to have approx. 2,000 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the economic development zone of Rizhao. Our checks reveal that SC owns the total premise about 1,640,000 square meters.

http://www.asiasymbol.com/ (belongs to Asiasymbol) It includes the information on SC. The design is professional and the content is well organized. At present it is both in Chinese and English versions.

Email: min_xin@asiasymbol.com

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

Changes of SC’s registered information:

Date of change	Item	Before the change	After the change
Unknown	Company name	Shandong Asia Pacific SSYMB Pulp & Paper Co., Ltd.	Present one
2008	Registered number	000083	Present one

Organization Code: 613803877

MAIN SHAREHOLDERS:

Name % of Shareholding

Singapore Asia Symbol Rizhao Pte. Ltd 90

Rizhao First Light Industry Company 10

Rizhao First Light Industry Company

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

Registration No.: 371123018000497

Legal representative: Hu Zhishun

Incorporation Date: 1994-10-22

l Legal Representative, Chairman:

Mr. Lu Jian Zhong (Australian) is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative, chairman.

Also working in Asia Symbol (Chongqing) Paper Co., Ltd. as legal representative.

l Vice chairman:

Hu Zhishun is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice chairman.

Also working in Rizhao First Light Industry Company as legal representative.

l Vice chairman:

Wang Lexiang is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice chairman.

l Directors:

Wang Weiguo

Liu Ruofei

Wang Bo

Lee, Kincheng Andrew

l Supervisor:

Li Jianshao

SC is mainly engaged in manufacturing and selling pulp and paper.

SC’s products mainly include: pulp and paper.

SC sources its materials 70% from domestic market, and 30% from overseas market. SC sells 70% of its products in domestic market, and 30% 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 T/T, L/C and Credit of 30-60 days.

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

According to the website:

Asia Symbol (Guangdong) Omya Calcium Industry Co., Ltd.

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

Incorporation Date: Dec. 29, 2011

Registration No.: 440700400038646

Legal representative: Tan Yechuan

Asia Symbol (Chongqing) Paper Co., Ltd.

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

Registration No.: 500000400073452 

Incorporation Date: 2012-06-19

Legal representative: Lu Jian Zhong

SC is known to invest in the following company:

Asia Symbol (Guangdong) Paper Co., Ltd.

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

Incorporation Date: Nov. 21, 2002

Registration No.: 440000400011425

Registered Legal Form: Chinese-Foreign Equity Joint Venture Enterprise

Chief Executive: Mr. Li Jianshao (Legal Representative)

Web: http://www.paperone.com.cn/

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 accountant refused to release the bank details.

Financial Summary (Unaudited)

Unit: CNY’000

	As of Dec. 31, 2014
Current assets	4,794,830
Total assets	18,160,030
Total liabilities	12,430,920
Equities	5,729,110
	===========
Turnover	769,630
Profits	-21,690

Note: We did not find SC’s detailed financial report for Yr2014.

Important Ratios

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

	As of Dec. 31, 2014
*Liabilities to assets	0.68
*Net profit margin (%)	-2.82
*Return on total assets (%)	-0.12
*Turnover/Total assets	0.04

PROFITABILITY: FAIR

l The turnover of SC appears fairly good in its line.

l SC’s net profit margin is fair.

l SC’s return on total assets is fair.

l SC’s turnover is in a poor 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 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.63.88
UK Pound	1	Rs.97.21
Euro	1	Rs.72.51

INFORMATION DETAILS

Analysis Done by :	DIV
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.