MIRA INFORM REPORT

Report No. :	321237
Report Date :	09.05.2015

IDENTIFICATION DETAILS

Name :	Lucite International (China) Chemical Industry cO., lTD.
Registered Office :	26/F, Metro Tower, No. 30 Tian Yao Qiao Road, Xuhui District, Shanghai, 200030 Pr
Country :	China
Financials (as on) :	31.12.2014
Date of Incorporation :	25.09.2003
Com. Reg. No.:	310000400357001
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacturing and selling methyl methacrylate monomer; selling self-made surplus acetone hydrogen alcohol when methyl methacrylate monomer unit production has question; importing acetone hydrogen alcohol as the raw material of methyl methacrylate monomer when insufficient supply of raw materials hydrocyanic acid.
No. of Employees :	51

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 :	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	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 & address

Lucite International (China) Chemical Industry cO., lTD.

26/F, Metro Tower, NO. 30 Tian Yao Qiao Road, XuHui District, Shanghai, 200030 PR CHINA

TEL: 86 (0) 21-64268899 FAX: 86 (0) 21-64268860

EXECUTIVE SUMMARY

INCORPORATION DATE : SEP. 25, 2003

REGISTRATION NO. : 310000400357001

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : CHRISTOPHER COWELL (CHAIRMAN)

STAFF STRENGTH : 51

REGISTERED CAPITAL : USD 55,050,000

BUSINESS LINE : MANUFACTURING, TRADING

TURNOVER : CNY 858,640,000 (AS OF DEC. 31, 2014)

EQUITIES : CNY 931,720,000 (AS OF DEC. 31, 2014)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.2073 = 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 wholly foreign-owned enterprise at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Sep. 25, 2003.

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 and selling methyl methacrylate monomer; selling self-made surplus acetone hydrogen alcohol when methyl methacrylate monomer unit production has question; importing acetone hydrogen alcohol as the raw material of methyl methacrylate monomer when insufficient supply of raw materials hydrocyanic acid.

SC is mainly engaged in manufacturing and selling chemical products.

Christopher Cowell has been legal representative and chairman of SC since 2015.

SC is known to have approx. 51 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. SC’s employee refused to release the detailed information of the premise.

Factory address: Xihe Road, Shanghai Chemical Industrial Park, Shanghai

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

Email: angela.zhang@lucite.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
2015-4-17	Legal representative	Liu Xijin刘锡金	Present one

Tax Registration Certificate No.: 310228717869774

Organization Code: 717869774

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

MAIN SHAREHOLDERS:

Name % of Shareholding

Lucite International China Holdings Ltd. 100

Legal Representative and Chairman:

Christopher Cowell is currently responsible for the overall management of SC.

Working Experience(s):

From 2015 to present Working in SC as legal representative and chairman.

Also working in Lucite International (Shanghai) Trading Co., Ltd. as legal representative.

Directors:

Ian Lambert

Benjamin James Harris

Xing Fei

SC is mainly engaged in manufacturing and selling chemical products.

SC’s products mainly include: methyl methacrylate monomer, PMMA, acrylic sheet, acrylic resin, etc.

SC sources its materials 100% from domestic market. SC sells 100% of its products in domestic market.

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

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

Lucite International (Shanghai) Trading Co., Ltd.

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

Registration no.: 310115400156959

Legal representative: Christopher Cowell

Incorporation date: 2004-8-13

Tel: +86-21-64268899

Fax: +86-21-64268860

Email: angela.yang@lucite.com

Branches:

Lucite International (China) Chemical Industry Co., Ltd. Beijing Office

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

Registration no.: B04021

Principal: Zhang Jinbiao

Incorporation date: 2005-01-14

Tel: +86-10-84534852 84534828

Fax: +86-10-84534917

Email: nina.zuo@lucite.com

Lucite International (China) Chemical Industry Co., Ltd. Guangzhou Branch

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

Registration no.: 440101400084208

Principal: Gu Jianping

Incorporation date: 2006-08-15

Tel: +86-20-85251706

Fax: +86-20-85251703

Email: suki.leung@lucite.com

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 declined to release its banking details.

Financial Summary

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

Unit: CNY’000

	As of Dec. 31, 2014
Total assets	1,211,460
	=========
Total liabilities	279,740
Equities	931,720
	--------------
Total liabilities & equities	1,211,460
	=========
Turnover	858,640
Profits	33,090

Note: SC’s management refused to release its detailed financial reports.

Important Ratios

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

	As of Dec. 31, 2014
*Liabilities to assets	0.23
*Net profit margin (%)	3.85
*Return on total assets (%)	2.73
*Turnover/Total assets	0.71

PROFITABILITY: FAIRLY GOOD

The turnover of SC appears fairly good in its line.

SC’s net profit margin remains in an average level.

SC’s return on total assets remains in an average level.

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

LEVERAGE: AVERAGE

The debt ratio of SC is low.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Stable.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.05
UK Pound	1	Rs.99.04
Euro	1	Rs.71.76

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.