MIRA INFORM REPORT

Report No. :	345302
Report Date :	13.10.2015

IDENTIFICATION DETAILS

Name :	Duoleng New Material Co., Ltd.
Registered Office :	East of Train Station, Jiaomei Town, Longhai, Fujian Province, 363107 Pr
Country :	China
Financials (as on) :	31.12.2013
Date of Incorporation :	12.05.1999
Com. Reg. No.:	350600400000204
Legal Form :	Shares Limited Co
Line of Business :	Manufacturing and Sales of New Materials.
No. of Employees :	300

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

Duoleng New Material Co., Ltd.

East of train STATION, jiaomei town,

longhai, fujian PROVINCE, 363107 PR CHINA

TEL: 86 (0) 596-6773767/6770683 FAX: 86 (0) 596-6788523

EXECUTIVE SUMMARY

INCORPORATION DATE : MAY 13, 1999

REGISTRATION NO. : 350600400000204

REGISTERED LEGAL FORM : Shares limited co.

CHIEF EXECUTIVE : Mr. Wang youjie (legal representative)

STAFF STRENGTH : 300

REGISTERED CAPITAL : CNY 66,000,000

BUSINESS LINE : TRADING and manufacturing

TURNOVER : CNY 215,460,000 (AS OF DEC. 31, 2013)

EQUITIES : CNY 192,760,000 (AS OF DEC. 31, 2013)

PAYMENT : AVERAGE

MARKET CONDITION : competitive

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : steady

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.1464 = 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 Shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).

Company Status: Shares limited co.

This form of business in PR China is defined as a legal person. Its registered capital is divided into shares of equal par value and the co. raises capital by issuing share certificates by promotion or by public offer. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to the extent of its total assets. The co has independent property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as follows:

The establishment of the co. requires at least two promoters and no more than 200, half of whom shall be domiciled in China.. Natural person are allowed to serve as promoters.

The minimum registered capital of a co. is CNY 5M. while that of the co. with foreign investment is CNY 5M. The total capital of a co. which propose to apply for publicly listed must be no less than CNY 30M.

The board of directors must consist of five to nineteen directors.

If the co. raises capital by public offer, the promoters must not subscribe less than 35% of the total shares. the promoters’ shares are restricted to transfer- within one year of the offer.

A state-owned enterprise that is restructured into a shares limited co. must comply with the conditions & requirements specified under the law & administrative rule.

SC’s registered business scope includes manufacture of steel grit, saw blade and steel shot cutting tools and abrasives, abrasive grain (if needed with permit).

SC is mainly engaged in manufacturing and sales of new materials.

Mr. Wang Youjie is legal representative, chairman and general manager of SC at present.

SC is known to have approx. 300 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in Longhai. Detailed premise information is not available at present.

Note: *SC has another office at 2/F, Building 9, Guanyinshan International Business Center, Siming District, Xiamen, Fujian Province (Tel: 0592-8268535/8268536; Fax: 0592-8268556)

*The given telephone number (86-592-8298535) did not exist.

http://www.duoleng.com/ (belongs to Fujian Duoleng Steel Group Co., Ltd.) The design is professional and the content is well organized. At present it is in English and Chinese versions, etc.

Email: duoleng@duoleng.com

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

SC’s former name was Longhai Duoleng Saw Blade Co., Ltd.

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

Organization Code: 61147810x

MAIN SHAREHOLDERS:

Name Amount (CNY) % of Shareholding

Wang Youjie 7,340,000 11.12

Fujian Duoleng Steel Group Co., Ltd. 50,800,000 76.97

Fujian Duoleng Logistics Co., Ltd. 7,860,000 11.91

Fujian Duoleng Steel Group Co., Ltd.

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

Incorporation Date: 1994-03-31

Registration No.: 350681100015290

Legal representative: Wang Xinhui

Fujian Duoleng Logistics Co., Ltd.

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

Registration No.: 350681100027316

Legal representative: Wang Lili

l Legal Representative, Chairman and General Manager:

Mr. Wang Youjie is currently responsible for the overall and daily management of SC.

Working Experience(s):

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

l Director:

Wang Yeping

Zhang Ruifen

Wang Xinhui

Huang Chaobao

l Supervisor:

Zhou Yajuan

Chen Chunhui

Wang Peiyuan

SC is mainly engaged in manufacturing and sales of new materials.

SC’s products mainly include: steel grit, saw blade.

SC sources its materials 100% from domestic market. SC sells 25% of its products in domestic market, and 75% to overseas 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, L/C and Credit of 30-60 days.

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

TRADEMARKS & PATENTS

Registration No.: 10478560

Registration Date: Jun. 7, 2013

Trademark Design:

According to the website:

Xiamen Duoleng Renewable Resources Technology Co., Ltd.

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

Incorporation Date: 2010-9-17

Registration No.: 350203200227624

Legal representative: Wang Jiangzhuan

Xiamen Duoleng Import & Export Co., Ltd.

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

Incorporation Date: 2001-2-27

Registration No.: 350200200002018

Legal representative: Lin Dingshun

Etc.

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

Unit: CNY’000

	As of Dec. 31, 2013
Current assets	258,740
Total assets	346,330
Current liabilities	153,570
Total liabilities	153,570
Equities	192,760
	===========
Turnover	215,460
Cost of goods sold	179,020
Profit before tax	6,660
Less: profit tax	850
Profits	5,810

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

Important Ratios

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

	As of Dec. 31, 2013
*Current ratio	1.68
*Liabilities to assets	0.44
*Net profit margin (%)	2.70
*Return on total assets (%)	1.68
*Turnover/Total assets	0.62
* Cost of goods sold/Turnover	0.83

PROFITABILITY: AVERAGE

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

l SC’s net profit margin is average.

l SC’s return on total assets is average.

l SC’s cost of goods sold is average.

LIQUIDITY: AVERAGE

l The current ratio of SC is maintained in a normal level.

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

LEVERAGE: FAIRLY GOOD

l The debt ratio of SC is low.

l 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.64.73
UK Pound	1	Rs.99.30
Euro	1	Rs.73.60

INFORMATION DETAILS

Report Prepared by :

ASH

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