MIRA INFORM REPORT

Report No. :	347112
Report Date :	28.10.2015

IDENTIFICATION DETAILS

Name :	NANJING HBL INTERNATIONAL CO., LTD.
Registered Office :	Room 603, Bldg. 4, No. 158 Lushan Road, Jianye District Nanjing, Jiangsu Province 210019 Pr
Country :	China
Financials (as on) :	30.06.2015
Date of Incorporation :	19.01.2006
Com. Reg. No.:	320193000000167
Legal Form :	Limited Liabilities Company
Line of Business :	Subject is engaged in selling chemicals.
No. of Employees :	28

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

NANJING HBL INTERNATIONAL CO., LTD.

ROOM 603, BLDG. 4, NO. 158 LUSHAN ROAD, JIANYE DISTRICT

NANJING, JIANGSU PROVINCE 210019 PR CHINA

TEL: 86 (0) 25-87787916

FAX: 86 (0) 25-58390088

EXECUTIVE SUMMARY

Date of Registration : january 19, 2006

REGISTRATION NO. : 320193000000167

LEGAL FORM : Limited liabilities company

CHIEF EXECUTIVE : rui yimin (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 5,000,000

staff : 28

BUSINESS CATEGORY : trading

REVENUE : CNY 150,990,000 (FROM JAN. 1, 2015 TO JUN. 30, 2015)

EQUITIES : CNY 44,927,000 (AS OF JUN. 30, 2015)

WEBSITE : N/A

E-MAIL : N/A

PAYMENT : SLOW BUT CORRECT

MARKET CONDITION : average

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : ordinary

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.35 = USD 1

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION:

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

Operational Trend:- General Reputation:-

Upward Excellent

Steady Good

Fairly Steady Fairly Good

Ordinary Average

Fair Fair

Stagnant Detrimental

Downward Not known

Not known Not yet be determined

Not yet be determined

LEGAL STATUS & HISTORY

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 320193000000167 on January 19, 2006.

SC’s Organization Code Certificate No.: 78384341-7

SC’s registered capital: CNY 5,000,000

SC’s paid-in capital: CNY 5,000,000

Registration Change Record:-

No significant changes of SC have been noted in SAIC since its incorporation.

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)	% of Shareholding
Jiangsu Baoyuan Investment Management Co., Ltd.	10
Nanjing HBL Alkylol Amines Co., Ltd.	50
Hongbaoli Group Co., Ltd.	40

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Rui Yimin
General Manager and Director	Zhang Liangfu
Director	Tao Meijuan
Supervisor	Zhao Yun

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Jiangsu Baoyuan Investment Management Co., Ltd. 10

Nanjing HBL Alkylol Amines Co., Ltd. 50

Nanjing Hongbaoli Co., Ltd. 40

Jiangsu Baoyuan Investment Management Co., Ltd.

---------------------------------------------------------------

Registration No.: 320125000010536

Date of Registration: November 23, 2001

Legal Form: Limited Liabilities Company

Registered Capital: CNY 11,581,392

Legal Representative: Rui Jinggong

Nanjing HBL Alkylol Amines Co., Ltd.

------------------------------------------------

Registration No.: 320193000000003

Date of Registration: August 30, 2004

Legal Form: Limited Liabilities Company

Registered Capital: CNY 50,000,000

Legal Representative: Zhang Yijun

Hongbaoli Group Co., Ltd.

--------------------------------

Registration No.: 320100000119328

Date of Registration: June 23, 1994

Legal Form: Shares Limited Company

Registered Capital: CNY 539,274,768

Legal Representative: Rui Jinggong

Web: www.hongbaoli.com

MANAGEMENT

Rui Yimin, Legal Representative and Chairman

-------------------------------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

At present, working in SC as legal representative and chairman

Zhang Liangfu, General Manager and Director

------------------------------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

At present, working in SC as general manager and director

Director

-----------

Tao Meijuan

Supervisor

--------------

Zhao Yun

BUSINESS OPERATION

SC’s registered business scope includes wholesaling dangerous chemicals; importing and exporting chemical products, machinery, meters & instruments, and components; importing and exporting commodities and technology.

SC is mainly engaged in selling chemicals.

SC’s products mainly include: chemicals.

SC sources its products 100% from domestic market, mainly Jiangsu. SC sells 20% of its products in domestic market, and 80% to overseas market, mainly U.S.A.

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

*Major Customer*

---------------------

Den Hartogh Americas Inc.

Staff & Office:

--------------------------

SC is known to have approx. 28 staff at present.

SC rents an area as its operating office, but the detailed information is unknown.

RELATED COMPANY

Nanjing Hongbaoli New Material Co., Ltd.

Registration No.: 320125000093146

Date of Registration: May 8, 2009

Legal Form: Limited Liabilities Company

Registered Capital: CNY 100,000,000

Legal Representative: Wei Hua

PAYMENT

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.

BANKING

The bank information of SC is not filed in local SAIC.

FINANCIALS

Financial Summary

Unit: CNY’000	As of Dec. 31, 2013	As of Dec. 31, 2014	As of Jun. 30, 2015
Current assets	75,967	75,366	68,815
Non-Current assets	657	592	727
	-------------	-------------	-------------
Total assets	76,624	75,958	69,542
	-------------	-------------	-------------
Current liabilities	39,990	36,533	24,615
Non-Current liabilities	0	0	0
	-------------	-------------	-------------
Total liabilities	39,990	36,533	24,615
Equities	36,634	39,425	44,927
	-------------	-------------	-------------
	As of Dec. 31, 2013	As of Dec. 31, 2014	From Jan. 1, 2015 to Jun. 30, 2015
Revenue	274,083	326,670	150,990
Profits	4,947	2,790	5,502

Important Ratios

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

	As of Dec. 31, 2013	As of Dec. 31, 2014	As of Jun. 30, 2015
*Current ratio	1.90	2.06	2.80
*Liabilities to assets	0.52	0.48	0.35
*Net profit margin (%)	1.80	0.85	3.64
*Return on total assets (%)	6.46	3.67	7.91
*Revenue / Total assets	3.58	4.30	2.17

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

The revenue of SC appears average in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a fairly good level.

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

LEVERAGE: AVERAGE

The debt ratio of SC is average.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.96
UK Pound	1	Rs.99.73
Euro	1	Rs.71.84

INFORMATION DETAILS

Analysis Done by :	HNA
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.