MIRA INFORM REPORT

Report No. :	349318
Report Date :	16.11.2015

IDENTIFICATION DETAILS

Name :	SINOWAY INTERNATIONAL (JIANGSU) CO., LTD.
Registered Office :	No. 17, Beijing West Road, Nanjing City, Jiangsu Province 210024 Pr
Country :	China
Financials (as on) :	31.12.2014
Date of Incorporation :	09.02.2007
Com. Reg. No.:	320000000022269
Legal Form :	Limited Liabilities Company
Line of Business :	Wholesaling virulent chemicals and hazard chemicals; wholesaling and retailing pre-packaged food and bulk food; importing and exporting commodities & technology, domestic trade, selling type I medical apparatus; ship and equipment leasing.
No. of Employee :	36

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

Sinoway International (Jiangsu) Co., Ltd.

No. 17, Beijing West Road, Nanjing City, Jiangsu Province 210024 PR China

TEL: 86 (0) 25-83318648/83325274 FAX: 86 (0) 25-83307058/83318076

EXECUTIVE SUMMARY

INCORPORATION DATE : FEB. 9, 2007

REGISTRATION NO. : 320000000022269

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MR. CHEN ZHONGYU (LEGAL REPRESENTATIVE)

STAFF STRENGTH : 36

REGISTERED CAPITAL : CNY 30,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 1,049,070,000 (AS OF DEC. 31, 2014)

EQUITIES : CNY 59,050,000 (AS OF DEC. 31, 2014)

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.35 = 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

Note: The complete name is the heading one. SC is also known as Jiangsu Zhonghui Import and Export Co., Ltd.

SC was registered as a Limited Liabilities Company at Jiangsu Provincial Administration for Industry & Commerce (AIC – The official body of issuing and renewing business license).

Company Status: Limited Liabilities Company

This form of business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered capital jointly. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics of this form of co. are as follows:

Upon the establishment of the co., an investment certificate is issued to the each of shareholders.

The board of directors is comprised of three to thirteen members.

The minimum registered capital for a co. is CNY 30,000.

Shareholders may take their capital contributions in cash or by means of tangible assets or intangible assets such as industrial property and non-patented technology.

Cash contributed by all shareholders must account for at least 30% of the registered capital.

Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the other shareholders and to subscribe for the newly increased registered capital of the co.

SC’s registered business scope includes wholesaling virulent chemicals and hazard chemicals; wholesaling and retailing pre-packaged food and bulk food; importing and exporting commodities & technology, domestic trade, selling type I medical apparatus; ship and equipment leasing.

SC is mainly engaged in trading different kinds of products.

Mr. Chen Zhongyu is the legal representative and general manager of SC at present.

SC is known to have approx. 36 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Nanjing. Detailed premise information is not available at present.

http://www.sinoway-pharma.com The design is professional and the content is well organized. At present it is in English version.

E-Mail: Xjinsong@cncccjs.com

Tzhendong@cncccjs.com

The other website: http://www.concreteadditive-sino.com/

Changes of its registered information:

Date of change	Item	Before the change	After the change
2008	Registration No.	3200001106276	Present one
2009-7	Shareholdings	Jiangsu Textile (Group) Corp. 39% Tao Jinzhao 12% Chen Zhongyu 11% Dai Bolun 10% Jiangsu Hongtai Investment Co., Ltd 10% Lu Baoqin 9% Shen Ling 9%	Jiangsu Textile (Group) Corp. 39% Tao Jinzha 13.33% Chen Zhongyu 11% Dai Bolun 8.67% Jiangsu Hongtai Investment Co., Ltd 10% Lu Baoqin 9% Shen Ling 4% Lu Shenxing 5%
2010-2	Shareholdings	Jiangsu Textile (Group) Corp. 39% Tao Jinzhao 13.33% Chen Zhongyu 11% Dai Bolun 8.67% Jiangsu Hongtai Investment Co., Ltd. 10% Lu Baoqin 9% Shen Ling 4% Lu Shenxing 5%	Jiangsu Textile (Group) Corp. 49% Tao Jinzhao 13.33% Chen Zhongyu 11% Dai Bolun 8.67% Lu Baoqin 9% Shen Ling 4% Lu Shenxing 5%
2011-3	Shareholder’s name	Jiangsu Textile (Group) Corp.	Jiangsu Textile Group Co., Ltd.
Unknown	Legal representative	Tao Jinzhao	Present one
	Shareholdings	Jiangsu Textile Group Co., Ltd. 49% Tao Jinzhao 13.33% Chen Zhongyu 11% Dai Bolun 8.67% Lu Baoqin 9% Shen Ling 4% Lu Shenxing 5%	Present ones

Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.

Organization Code: 798624348

Certificate:

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

MAIN SHAREHOLDERS:

Name Amount (CNY) % of Shareholding

Jiangsu Textile Group Co., Ltd. 14,700,000 49

Tao Jinzhao ID# 32011219491031XXXX 60,000 0.2

Chen Zhongyu ID# 32010719660308XXXX 15,060,000 50.2

Dai Bolun ID# 32022319741226XXXX 60,000 0.2

Lu Shenxing ID# 32010419570926XXXX 60,000 0.2

Other shareholders 60,000 0.2

Jiangsu Textile Group Co., Ltd.

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

Legal representative: Qian Yiping

Registered no.: 320000000004696

Registered capital: CNY 300,000,000

Address: No. 482, Zhongshan East Road, Nanjing City

Tel: 025-84414424

Fax: 025-84413515

Website: http://www.jstexgroup.com/

Legal Representative and General Manager:

Mr. Chen Zhongyu, ID# 32010719660308XXXX, born in 1966 with university education. He is currently responsible for the overall and daily management of SC.

Working Experience(s):

At present Working in SC as legal representative and general manager.

Chairman:

Mr. Tao Jinzhao, ID# 32011219491031XXXX, born in 1949 with university education. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as chairman.

Directors:

=======

Gu Wenjin

Chen Zhongyu

Dai Bolun

Lu Shenxing

Shi Yunyun

Wu Rongchun

Supervisors:

========

Zheng Qiusheng

Yang Minzhi

Wang Shengyu

SC is mainly engaged in trading different kinds of products.

SC’s products mainly include:

Dietary Supplements: Herb Extract Animal Extract

Food Additives

Cosmetics

SC sources its materials 60% from domestic market, and 40% from overseas markets. SC sells 60% of its products in domestic market, and 40% to overseas market, mainly Europe, America, Southeast Asia, Japan and Korea.

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

Note: SC’s management declined to release its main clients and suppliers.

SC is not known to have any subsidiary at present.

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.

Bank of China Jiangsu Province Branch

AC#: N/A

Relationship: Normal.

Financial Summary

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

Unit: CNY’000

	As of Dec. 31, 2013	As of Dec. 31, 2014
Total assets	/	570,710
	=========	=========
Total liabilities	/	511,660
Equities	/	59,050
	--------------	--------------
Total liabilities & equities	/	570,710
	=========	=========
Turnover	1,281,017	1,049,070
Profit before tax	10,650	10,060
Less: profit tax	2,928	2,640
Profits	7,722	7,420

Note: we did not find SC’s detailed financial reports.

Important Ratios

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

	As of Dec. 31, 2013	As of Dec. 31, 2014
*Liabilities to assets	/	0.90
*Net profit margin (%)	0.60	0.71
*Return on total assets (%)	/	1.30
*Turnover/Total assets	/	1.84

PROFITABILITY: AVERAGE

The turnover of SC appears good in its line.

SC’s net profit margin is average.

SC’s return on total assets is average in 2014.

SC’s turnover is in an average level in 2014, comparing with the size of its total assets.

LEVERAGE: FAIR

The debt ratio of SC is 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.14
UK Pound	1	Rs.100.55
Euro	1	Rs.71.26

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	ANK

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.