MIRA INFORM REPORT

Report No. :	341586
Report Date :	30.09.2015

IDENTIFICATION DETAILS

Name :	AEROSUN CORPORATION
Registered Office :	No. 188, Tianyuan Middle Road, Jiangning Economic & Technological Development Zone, Nanjing, Jiangsu Province, 211100 Pr
Country :	China
Date of Incorporation :	30.09.1999
Com. Reg. No.:	320000000013775
Legal Form :	Shares Limited Company
Line of Business :	Subject is engaged in researching, developing, manufacturing and selling special-purpose vehicles, flexible metallic hoses, pressure vessels, tunneling roadheaders, artistic statues
No. of Employee :	3,001 (Including main subsidiaries)

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 moreMARKET-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 foreignTRADE 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 dailyTRADING 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 andOIL, 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

AEROSUN CORPORATION

NO. 188, TIANYUAN MIDDLE ROAD, JIANGNING ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONE, NANJING, JIANGSU PROVINCE, 211100 PR CHINA

TEL: 86 (0) 25-52826030/52826033/52826007/52825600 FAX: 86 (0) 25-52826039

EXECUTIVE SUMMARY

INCORPORATION DATE : sEP. 30, 1999

REGISTRATION NO. : 320000000013775

REGISTERED LEGAL FORM : SHARES LIMITED COMPANY

CHIEF EXECUTIVE : MR. Wu qing (CHAIRMAN)

STAFF STRENGTH : 3,001 (INCLUDING main SUBSIDIARIES)

REGISTERED CAPITAL : CNY 421,283,600

BUSINESS LINE : R&D, MANUFACTURE

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : steady

GENERAL REPUTATION : WELL KNOWN

EXCHANGE RATE : CNY 6.1045 = 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 company at Jiangsu Provincial Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Sep. 30, 1999.

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 and sales of pressure vessel. Manufacture and sales of transport equipment, environmental protection equipment and sanitation vehicles, pipe products and accessories, general machinery and accessories, automatic control systems and equipment, instrumentation, electronic products, non-metallic products, handicraft article; development of laser gyro and its inertial measurement system, satcom on the move system, telemetry system, electronic and electrical products; import and export of goods and technology; technology development, consulting services, industry investment, equipment installation, steel structural engineering professional contract; domestic trade (if needed with permit).

SC is mainly engaged in researching, developing, manufacturing and selling special-purpose vehicles, flexible metallic hoses, pressure vessels, tunneling roadheaders, artistic statues,

Mr. Wu Qing is legal representative and chairman of SC at present.

SC is known to have approx. 3,001 employees at present, including 1,262 production staff, 357 sales staff, 567 administration staff, 99 financial staff and 716 technical staff.

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

http://www.aerosun.cn The design is professional and the content is well organized. At present it is in Chinese and English versions.

Email: zt@aerosun.cn

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

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
Unknown	Registration no.	3200001104612	Present one
2001-5	Registered capital	CNY 83,000,000	CNY 123,000,000
2003-6	Company name	Nanjing Chenguang Aerospace Applying Technology Co., Ltd.	Nanjing Aerosun Corporation
2004-12	Company name	Nanjing Aerosun Corporation	Present one
2007-3	Registered capital	CNY 123,000,000	CNY 324,403,000
2011-7	Registered capital	CNY 324,403,000	CNY 389,283,600
2015-8-20	Registered capital	CNY 389,283,600	Present one

SC was listed in Shanghai Stock Exchange in 2001 with the stock code 600501.

Tax Registration Certificate No.: 320121714091899

Organization Code: 714091899

The company obtained USA’s ASME ”U” and “U2” grade authorized certificate since 1993 and was approved by China’s National Quality Technical Supervision Bureau in designing and manufacturing pressure vessels of grade AR1, AR2 and tank vehicle grade CR2.

SC has got the certificates of ISO14001 and ISO9001.

MAIN SHAREHOLDERS: (As of Jun. 30, 2015)

Name % of Shareholding

China Aerospace Science and Industry Corporation 25.2

Nanjing Chenguang Group Co., Ltd. 21.28

Shaanxi International Trust Co., Ltd. 3.49

China Construction Bank Corporation-Fullgoal CSI National Defense

Industry Index Classified Fund 2.34

SWS MU Fund-Industrial and Commercial Bank of China-Huarong Trust-Zhenghong

No. 2 Equity Investment Fund Trust Plan (In Chinese Pinyin) 1.57 

China Nature Fund-Industrial and Commercial Bank of China-Huarong Trust-Huarong·

Haixi Shengqian No. 7 Equity Investment Fund Trust Plan (In Chinese Pinyin) 1.57 

China Construction Bank Corporation-Penghua CSI National Defense

Industry Index Classified Fund 1.29

National Council for Social Security Fund Combination 417 1.2 

China Construction Bank Corporation-Huashang Future Theme Equity

Securities Investment Fund (Literal translation) 1.04

China Construction Bank Corporation-CIFM Excellence Manufacture Equity

Securities Investment Fund (Literal translation) 0.82 

Other shareholders 40.2

China Aerospace Science and Industry Corporation

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

China Aerospace Science and Industry Corporation, CASIC, is the backbone of national science and technology industry, is a large state-owned hi-tech enterprise under direct administration of central government. It has grown out of the Fifth Academy of the Ministry of Defense in 1956, and gone through a long history with different names of the Ministry of the Seventh Machinery Industry, the Ministry of Aerospace Industry, the Ministry of Aviation and Aerospace Industry, China Aerospace Corporation, China Aerospace Machinery and Electronics Corporation, and the present one. CASIC owns seven academies, two scientific research and development bases, six public listed companies, and over 620 other companies and institutes scattering nationwide.

Registration No.: 100000000031851

Legal representative: Gao Hongwei

Web: http://www.casic.com.cn

E-mail: ht@casic.com.cn

Nanjing Chenguang Group Co., Ltd.

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

It is a large comprehensive machinery manufacturing group corporation subordinated to China Aerospace Science and Industry corporation. It is evaluated National First Class Enterprise and one of hundred best enterprises in machinery field in China. It has been honored excellent enterprise for the ideological and political work and awarded civilization unit etc by Jiangsu provincial government and Nanjing municipality.

Incorporation Date: 1996-06-05

Registration No.: 320100000021150

Legal Representative: Hu Jianjun

Web: http://www.cacgg.com

Legal Representative and Chairman:

Mr. Wu Qing, born in 1959, with Doctor’s degree, researcher. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

Vice Chairman and General Manager:

Mr. Wu Qihong, born in 1962, with Doctor’s degree, senior engineer. He is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice chairman and general manager.

Also working in Nanjing Aerosun Mitsuimiike Machinery Co., Ltd. as legal representative.

Vice General Manager:

Xia Yuxin

Li Chunfang

Directors:

Xiao Jianhua

Zhou Yong

Li Xinhe

Etc.

Supervisors:

Chen Cuilan

Zhu Tao

Yu Jiang

SC is mainly engaged in researching, developing, manufacturing and selling special-purpose vehicles, flexible metallic hoses, pressure vessels, tunneling roadheaders, artistic statues

SC’s products mainly include: special-purpose vehicles, reinforced thermal plastic pipes, flexible metallic hoses, expansion joint bellows, pressure vessels, tunneling roadheaders, artistic statues,

SC sources its materials 100% from domestic market. SC sells 95% of its products in domestic market, and 5% to the overseas market.

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.

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

Trademark & Patents

Registration No.	7241797	6177160	4720992
Registration Date	2012-05-07	2010-1-7	2009-10-07
Trademark Design

SC is known to invest in the following companies:

Nanjing Chenguang Morita Environmental Protection Science & Technology Co., Ltd.

Nanjing Chenguang Soosan Electro-hydraulic Special Purpose Vehicle Co., Ltd.

Nanjing Aerosun Mitsuimiike Machinery Co., Ltd.

Nanjing Aerosun-Tola Expansion Joint Co. Ltd.

Beijing Chenguang Tianyun Special Vehicle Co., Ltd.

Branches:

Aerosun Corporation Tunnel Boring Machine Branch

Aerosun Corporation Metal Hose Branch

Aerosun Corporation Special Vehicle Branch

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.

We’ll update financial information later.

SC is considered to have a development history of 16 years. Due to lack of financial statements, we are unable to determine the maximum credit limit for SC. Taking into consideration of all the factors above, credit dealing up to moderate amount appears acceptable.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.18
UK Pound	1	Rs.100.46
Euro	1	Rs.74.61

INFORMATION DETAILS

Report Prepared by :

ANK

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.