MIRA INFORM REPORT

Report No. :	348890
Report Date :	13.11.2015

IDENTIFICATION DETAILS

Name :	LM WIND POWER BLADES (QINHUANGDAO) CO., LTD.
Registered Office :	No. 65, Longhai Road, Qinhuangdao Economic & Technological Development Zone, Hebei, 066004 Pr
Country :	China
Financials (as on) :	31.12.2014
Date of Incorporation :	15.12.2008
Com. Reg. No.:	130300400004494
Legal Form :	Wholly Foreign Owned Enterprise
Line of Business :	Subject is engaged in manufacturing and selling blades & spare parts.
No. of Employees :	824

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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. 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 and address

LM WIND POWER BLADES (QINHUANGDAO) CO., LTD.

NO. 65, LONGHAI ROAD, qinhuangdao economic & technological development zone, hebei, 066004 PR CHINA

TEL: 86 (0) 335-5303211 FAX: 86 (0) 335-5303222

EXECUTIVE SUMMARY

INCORPORATION DATE : DEC. 15, 2008

REGISTRATION NO. : 130300400004494

REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED ENTERPRISE

CHIEF EXECUTIVE : MR. SOREN HOFFER (CHAIRMAN)

STAFF STRENGTH : 824

REGISTERED CAPITAL : CNY 105,000,000

BUSINESS LINE : MANUFACTURING & TRADING

TURNOVER : CNY 761,660,000 (AS OF DEC. 31, 2014)

EQUITIES : CNY 208,790,000 (AS OF DEC. 31, 2014)

PAYMENT : SLOW BUT CORRECT

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.3356= 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 Ren Min Bi

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 Dec. 15, 2008.

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 scopes include developing, manufacturing and selling resin composite blades, blades mould and spare parts, related technological services, cargo (except dangerous goods) storage services, renting mould.

SC is mainly engaged in manufacturing and selling blades & spare parts.

Mr. Soren Hoffer is legal representative and chairman of SC at present.

SC is known to have approx. 824 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the economic & technological development zone of Qinhuangdao. The detailed premise information is unknown.

http://www.lmwindpower.com/ The web belongs to LM Wind Power Group. The design is professional and the content is well organized. At present it is in English version.

No significant events or changes were found during our checks with the local Administration for Industry and Commerce.

Organization Code: 682768198

In the past two years there is no record of litigation

MAIN SHAREHOLDERS:

Name % of Shareholding

LM Wind Power A/S (Denmark) 100

LM Wind Power is the world’s leading supplier of components and services to the wind turbine industry. LM Wind Power has produced more than 175,000 blades since 1978, corresponding to approximately 70 GW installed wind power capacity which can each year effectively replace approximately 120 million tons of CO2. Their headquarter is in Kolding, Denmark with a global business office in Amsterdam, The Netherlands. Their global manufacturing footprint includes factories located on 4 continents in 13 locations in Canada, USA, Brazil, Spain, Poland, Denmark, India and China – on or close to all key markets for wind power to better serve our customers.

Headquarter

Jupitervej 6, 6000 Kolding, Denmark

Tel +45 79 84 00 00

Fax +45 79 84 00 01

E-mail: info@lmwindpower.com

Web: http://www.lmwindpower.com/

Legal representative and Chairman:

Mr. Soren Hoffer, Danes, # 10154325, is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

Also working LM Wind Power Blades (Tianjin) Co., Ltd. and LM Wind Power Blades (Jiangsu) Co., Ltd. as legal representative and chairman

With the law firm Kromann Reumert before joining LM Wind Power where he has been in charge of the company’s legal and commercial affairs for years, initially as a corporate lawyer and later on as VP, Corporate Staff.

Directors:

Richard Andrew Bevan

Nicholas Alexander Smith

SC is mainly engaged in manufacturing and selling blades & spare parts.

SC’s products mainly include resin composite blades, blades mould, spare parts.

SC sources its materials 50% from domestic market and 50% from overseas market. SC sells 30% of its products in domestic market and 70% 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 Check, T/T, L/C and Credit of 30-60 days.

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

LM Wind Power Blades (Tianjin) Co., Ltd.

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

Credibility Code: 911202227257332521

Reg. No.: 120000400065657

Legal representative: Soren Hoffer

Incorporation date: 2001-2-21

LM Wind Power Blades (Jiangsu) Co., Ltd.

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

Reg. No.: 320281400012167

Legal representative: Soren Hoffer

Incorporation date: 2010-4-18

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 refused to release its banking information.

Financial Summary

Unit: CNY’000

	As of Dec. 31, 2014	As of Dec. 31, 2013
Total liabilities	660,040	655,230
Equities	208,790	283,720
	--------------------	--------------------
Total assets	868,830	938,950
	=============	=============
Turnover	761,660	615,650
Profit before tax	33,750	87,510
Less: profit tax	11,080	23,710
Profits	22,670	63,800

Note: We can’t get SC’s detailed financial reports for Yr 2013 & 2014 at local Administration for Industry & Commerce.

Important Ratios

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

	As of Dec. 31, 2014	As of Dec. 31, 2013
*Liabilities to assets	0.76	0.70
*Net profit margin (%)	2.98	10.36
*Return on total assets (%)	2.61	6.79
*Turnover/Total assets	0.88	0.66

PROFITABILITY: AVERAGE

The turnover of SC appears fairly good.

SC’s net profit margin is good in 2013, but average in 2014

SC’s return on total assets is fairly good in 2013, but average in 2014.

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

LEVERAGE: FAIR

The debt ratio of SC is average in 2013, but fairly high in 2014.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered medium-sized in its line with fairly stable financial conditions. Taking into consideration of SC’s general performance and operation size

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.35
UK Pound	1	Rs.100.28
Euro	1	Rs.71.30

INFORMATION DETAILS

Analysis Done by :	HEE
Report Prepared by :	TRU

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.