MIRA INFORM REPORT

Report No. :	502392
Report Date :	10.04.2018

IDENTIFICATION DETAILS

Name :	FARMASINO PHARMACEUTICALS (JIANGSU) CO., LTD.
Registered Office :	9/F, Bldg. F6, No. 9 Weidi Road, Qixia District, Nanjing, Jiangsu Province
Country :	China
Financials (as on) :	31.12.2017
Date of Incorporation :	17.10.2008
Unified Social Credit Code :	913200006811494595
Legal Form :	Limited Liabilities Company
Line of Business :	Subject registered business scope includes permitted operation items: operating hazardous chemicals, non-medicine precursor chemicals, II & III class medical apparatus and instruments. General operation items: developing, researching and transferring chemical technology and information consultant and services; importing and exporting commodities and technology; selling chemical products; and domestic trade.
No. of Employees :	160

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
China	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.

After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.

The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.

The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.

Source : CIA

Company name & address

COMPANY NAME	FARMASINO PHARMACEUTICALS (JIANGSU) CO., LTD.
CURRENT ADDRESS	NO. 100 JIANYE ROAD, NANJING, JIANGSU PROVINCE 210004 PR CHINA
REGISTERED ADDRESS	9/F, BLDG. F6, NO. 9 WEIDI ROAD, QIXIA DISTRICT, NANJING, JIANGSU PROVINCE
TEL. NO.	86 (0) 25-84267953/86907288/86907282
FAX NO.	86 (0) 25-86907366/86907203

EXECUTIVE SUMMARY

Date of Registration : OCTOBER 17, 2008

UNIFIED SOCIAL CREDIT CODE : 913200006811494595

LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : WAN HUIZHONG (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 32,727,300

staff : 160

BUSINESS CATEGORY : TRADING

Revenue : CNY 845,649,000 (AS OF DEC. 31, 2017)

EQUITIES : CNY 70,638,000 (AS OF DEC. 31, 2017)

WEBSITE : www.farmasino.com

E-MAIL : info@famasino.com

PAYMENT : slow but correct

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fair

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

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 Unified Social Credit Code: 913200006811494595.

SC’s Import and Export Enterprise Code: 3200681149459

SC’s registered capital: CNY 32,727,300

SC’s paid-in capital: CNY 32,727,300

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
--	Legal Representative	Fan Zhongfeng	Wan Huizhong
	Shareholder’s Name	Jiangsu Light Industrial Products Import & Export (Group) Corporation	High Hope Zhongding Corporation
	Registered Capital	CNY 10,000,000	CNY 30,000,000
	% of shareholding	High Hope Zhongding Corporation 35% Tong Xiao 5% Wang Li 30% Yan Libo 30%	High Hope Zhongding Corporation 40% Tong Xiao 5% Wang Li 24.38% Yan Libo 30.62%
2015-5-28	Registered Capital	CNY 30,000,000	CNY 32,727,300
	Shareholder (s) (% of Shareholding)	High Hope Zhongding Corporation 40% Tong Xiao 5% Wang Li 24.38% Yan Libo 30.62%	High Hope Zhongding Corporation 45% Yan Libo 44% Nanjing Jiumeng Investment Enterprise (Limited Partnership) 6.42% Tong Xiao 4.58%
2016-6-22	Registration No./ Unified Social Credit Code	320000000076867	913200006811494595

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

Name of Shareholder (s)	% of Shareholding
High Hope Zhongding Corporation	45
Yan Libo	44
Nanjing Jiumeng Investment Enterprise (Limited Partnership)	6.42
Tong Xiao	4.58

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Wan Huizhong
General Manager	Yan Libo
Director	Fan Zhongfeng
	Xu Hang
	Tong Xiao
Supervisor	Pan Shijie

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

High Hope Zhongding Corporation 45

Yan Libo 44

Nanjing Jiumeng Investment Enterprise (Limited Partnership) 6.42

Tong Xiao 4.58

High Hope Zhongding Corporation

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

High Hope Zhongding Corporation (formerly “Jiangsu Light Industrial Products Import & Export (Group) Corporation”) is one of the earliest foreign trade companies since the opening of Jiangsu port. Today the company has become a large-scale state enterprise with foreign trade as its leading work and a combination of real estate and investment business. Its registered capital is 278 million 592 thousand and 6 hundred Yuan. By the end of 2013, its net assets had exceeded 1 billion Yuan with annual business volume about 10 billion Yuan. The company mainly engages in export of light industrial products, textiles, machinery, ships, pharmaceuticals, chemicals, import and domestic trade of chemical materials, machinery and equipments. With an annual import and export volume over 1.2 billion USD, its business has spread over 100 countries and regions. For many years, it has ranked among the first hundred of five hundred enterprises holding the largest import and export amount in China. The brands of “FRIENDLY” and “JSLTOYS” have been recognized by the state as specially supported key brands for export and “Panda”, “Tiger”, “Swallow” as Jiangsu provincial famous brands.

Date of Registration: October 15, 1981

Unified Social Credit Code: 9132000013476361XD

Chief Executive: Wan Huizhong

Registered Capital: CNY 278,592,600

Tel: 86-25-58006166

Fax: 86-25-84208398

Web: www.jslgroup.com

E-mail: jsl@jslgroup.com

MANAGEMENT

Wan Huizhong, Legal Representative and Chairman

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

Gender: M

ID# 320114196408070914

Age: 54

Qualification: University

Working experience (s):

At present, working in SC as legal representative and chairman

Also working in High Hope Zhongding Corporation, Jiangsu Kaiyuan International Machinery Co., Ltd., Jiangsu Kaiyuan Tourism Co., Ltd., Jiangsu Kaiyuan International Tianpu Tools Co., Ltd., Jiangsu Zhongxin Toys Co., Ltd., Nanjing Kaiyuan Kangda Trading Co., Ltd., etc. as legal representative

Yan Libo, General Manager

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

Gender: M

ID# 432426197609198010

Age: 42

Qualification: University

Working experience (s):

From 2008 to present, working in SC as general manager and director

Also working in FarmaSino Pharmaceuticals (Anhui) Co., Ltd. as legal representative

Director

-----------

Fan Zhongfeng

Xu Hang

Tong Xiao ID# 320106196901250425

Supervisor

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

Pan Shijie

BUSINESS OPERATION

SC’s registered business scope includes permitted operation items: operating hazardous chemicals, non-medicine precursor chemicals, II & III class medical apparatus and instruments. General operation items: developing, researching and transferring chemical technology and information consultant and services; importing and exporting commodities and technology; selling chemical products; and domestic trade.

SC is mainly engaged in selling pharmaceuticals, chemicals, etc.

Brand: FARMASINO

SC’s products mainly include:

Finished Drugs (Tablets, Capsules, Liquid Injections, Powder for Injections, Miscellaneous, Packing Materials, Surgicals, Animal Medicine)

Bulk Pharmaceuticals (Active Pharmaceutical Ingredients, Veterinary Products, Amino Acids, Vitamins, Plant Extracts, Nutritional Supplements, Food Additives)

Intermediates & Chemicals (Pharmaceutical Intermediates, Agrochemical Intermediates, Pigment Intermediates, Fine Chemicals, Petrochemicals, Customer Manufacturing)

SC sources its products 100% from domestic market. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly European and Indian 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.

*Major Customers:

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

Catherych Inc.

Utc Overseas Inc.

Gurvey & Berry Co. Inc.

Staff & Office:

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

SC is known to have approx. 160 staff at present.

SC owns an area as its operating office and factory, but the detailed information is unknown.

RELATED COMPANY

Jiangsu Kaiyuan International Machinery Co., Ltd.

Jiangsu Kaiyuan Tourism Co., Ltd.

Jiangsu Kaiyuan International Tianpu Tools Co., Ltd.

Jiangsu Zhongxin Toys Co., Ltd.

Nanjing Kaiyuan Kangda Trading Co., Ltd.

Etc.

SC is known to have 2 subsidiaries at present,

FarmaSino Pharmaceuticals (Anhui) Co., Ltd.

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

Date of Registration: October 15, 2008

Unified Social Credit Code: 91340523680821688F

Chief Executive: Yan Lipo

Registered Capital: CNY 5,000,000

Skyrun Pharma Co., Ltd.

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

Date of Registration: January 29, 2016

Unified Social Credit Code: 91320113MA1MF17WX9

Chief Executive: Yan Libo

Registered Capital: CNY 10,000,000

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

Basic Bank:

Bank of China Jiangsu Branch

AC#: 509258191251

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2016	As of Dec. 31, 2017
Cash	165,291	156,948
Notes receivable	440	0
Accounts receivable	235,686	202,055
Advances to suppliers	22,623	75,911
Other receivable	57,341	0
Inventory	9,232	57,028
Non-current assets within one year	0	0
Other current assets	12,216	15,958
	------------------	------------------
Current assets	502,829	507,900
Long-term investment	18,119	18,119
Fixed assets	16,757	15,763
Construction in progress	30,056	32,412
Intangible assets	4,902	4,749
Long-term prepaid expenses	681	324
Deferred income tax assets	1,487	1,021
Other non-current assets	0	0
	------------------	------------------
Total assets	574,831	580,288
	=============	=============
Short-term loans	151,058	133,317
Notes payable	198,279	229,817
Accounts payable	40,597	57,261
Wages payable	0	0
Taxes payable	-1,665	-7,676
Profit payable	96	163
Advances from clients	28,182	32,768
Other payable	86,000	60,000
Other current liabilities	0	0
	------------------	------------------
Current liabilities	502,547	509,650
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	502,547	509,650
Equities	72,284	70,638
	------------------	------------------
Total liabilities & equities	574,831	580,288
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2016	As of Dec. 31, 2017
Revenue	757,867	845,649
Cost of sales	690,516	784,083
Sales expense	36,272	42,230
Management expense	9,451	4,841
Finance expense	16,820	17,635
Non-business income	1,720	868
Non-business expenditure	0	205
Profit before tax	5,337	-953
Less: profit tax	747	682
Profits	4,590	-1,635

Important Ratios

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

	As of Dec. 31, 2016	As of Dec. 31, 2017
*Current ratio	1.00	1.00
*Quick ratio	0.98	0.88
*Liabilities to assets	0.87	0.88
*Net profit margin (%)	0.61	-0.19
*Return on total assets (%)	0.80	-0.28
*Inventory / Revenue ×365	5 days	25 days
*Accounts receivable/ Revenue ×365	114 days	88 days
*Revenue/Total assets	1.32	1.46
*Cost of sales / Revenue	0.91	0.93

FINANCIAL COMMENTS

PROFITABILITY: FAIR

The revenue of SC appears fairly good in its line.

SC’s net profit margin is average in 2016, fair in 2017.

SC’s return on total assets is average in 2016, fair in 2017.

SC’s cost of sales is average, comparing with its revenue.

LIQUIDITY: AVERAGE

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

SC’s quick ratio is maintained in a normal level.

The inventory of SC is maintained in an average level.

The accounts receivable of SC appears large.

SC’s short-term loans appear large.

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: Fair.

CONCLUSIONS

SC is considered medium-sized in its line with fair financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.93
UK Pound	1	INR 91.50
Euro	1	INR 79.69
CNY	1	INR 10.31

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.