MIRA INFORM REPORT

Report No. :	503402
Report Date :	16.04.2018

IDENTIFICATION DETAILS

Name :	XIAMEN SUNRISE GROUP CO., LTD.
Registered Office :	No. 30 Xingbei Road, Xinglin, Jimei District, Xiamen, Fujian Province 361022 Pr
Country :	China
Financials (as on) :	31.12.2017
Date of Incorporation :	01.08.1995
Unified Social Credit Code :	91350200612260049W
Legal Form :	Shares Limited Company
Line of Business :	Subject registered business scope includes investment management; asset management; manufacturing auto parts and accessories, tires, rubber parts; wholesale and retail of automotive parts; wholesale of building materials; other warehousing industry; software development; information systems integration services; information technology consulting services; integrated circuit design; Internet access and related services; data processing and storage services; digital content services; importing and exporting various kinds of commodities and technology, excluding the goods forbidden by the government; exporting its products; importing materials, instrument, machinery and equipment, parts and technology needed for its production.
No. of Employees :	2,845

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+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
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	XIAMEN SUNRISE GROUP CO., LTD.
CURRENT ADDRESS/ REGISTERED ADDRESS	NO. 30 XINGBEI ROAD, XINGLIN, JIMEI DISTRICT, XIAMEN, FUJIAN PROVINCE 361022 PR CHINA
TEL. NO.	86 (0) 592-6666688/6666866/6666887
FAX NO.	86 (0) 592-6666899/6666883

EXECUTIVE SUMMARY

Date of Registration : augUST 1, 1995

UNIFIED SOCIAL CREDIT CODE : 91350200612260049W

LEGAL FORM : SHARES LIMITED COMPANY

CHIEF EXECUTIVE : wu ziwen (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 701,145,000

staff : 2,845

BUSINESS CATEGORY : MANUFACTURING & trading

Revenue : CNY 1,991,149,000 (CONSOLIDATED, AS OF DEC. 31, 2017)

EQUITIES : CNY 1,851,300,000 (CONSOLIDATED, AS OF DEC. 31, 2017)

WEBSITE : www.sunrisewheel.com

E-MAIL : 800@sunrisewheel.com

PAYMENT : regular

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly stable

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : FAIRLY GOOD

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 shares limited company of PRC with State Administration of Industry & Commerce (SAIC) under unified social credit code: 91350200612260049W.

SC’s Import and Export Enterprise Code: 3502612260049

SC’s registered capital: CNY 701,145,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2000-8	Company Name	Xiamen Sunrise Industry & Trade Co., Ltd.	Xiamen Sunrise Industrial Co., Ltd.
2008-12	Company Name	Xiamen Sunrise Industrial Co., Ltd.	Xiamen Sunrise Wheel Group Co., Ltd.
2010-3	Company Chinese Name	厦门日上车轮集团有限公司	厦门日上车轮集团股份有限公司
	Legal Form	Limited Liabilities Company	Shares Limited Company
2015-6-9	Registered Capital	212,000,000	CNY 233,100,000
2015-6-24	Company Name	Xiamen Sunrise Wheel Group Co., Ltd.	Xiamen Sunrise Group Co., Ltd.
2016	Registered Capital	CNY 233,100,000	CNY 699,300,000
--	Registration No./ Unified Social Credit Code	350200200034996	91350200612260049W
2017-8-29	Registered Capital	CNY 699,300,000	cny 701,145,000

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

Name of Shareholder (s) (As of December 31, 2017)	% of Shareholding
Wu Ziwen	41.04
Wu Lizhu	11.75
Wu Zhiliang	3.05
Wu Weiyang	2.14
Kang Yuefeng	0.32
Yuan Donghong	0.31
Mao Chengzhong	0.28
Wu Jinsheng	0.27
Wu Mingyu	0.27
Lin Yancun	0.24
Other Shareholders	40.33

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman and General Manager	Wu Ziwen
Deputy General Manager	Wu Zhiliang
	Zheng Yuqing
	Huang Xuecheng
	Wu Xiaohong
	He Aiping

RECENT DEVELOPMENT

SC is a listed company in Shenzhen Stock Exchange Market with the code of 002593.

SHAREHOLDER CHART & BACKGROUND

Name (As of December 31, 2017) % of Shareholding

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

Wu Ziwen 41.04

Wu Lizhu 11.75

Wu Zhiliang 3.05

Wu Weiyang 2.14

Kang Yuefeng 0.32

Yuan Donghong 0.31

Mao Chengzhong 0.28

Wu Jinsheng 0.27

Wu Mingyu 0.27

Lin Yancun 0.24

Other Shareholders 40.33

MANAGEMENT

Wu Ziwen, Legal Representative, Chairman and General Manager

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

Gender: M

Nationality: China

Qualification: University

Working experience (s):

From 1995 to present, working in SC as legal representative, chairman and general manager

Also working in Sichuan Sunrise Metal Co., Ltd. as legal representative

Deputy General Manager

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

Wu Zhiliang

Zheng Yuqing

Huang Xuecheng

Wu Xiaohong

He Aiping

BUSINESS OPERATION

SC’s registered business scope includes investment management; asset management; manufacturing auto parts and accessories, tires, rubber parts; wholesale and retail of automotive parts; wholesale of building materials; other warehousing industry; software development; information systems integration services; information technology consulting services; integrated circuit design; Internet access and related services; data processing and storage services; digital content services; importing and exporting various kinds of commodities and technology, excluding the goods forbidden by the government; exporting its products; importing materials, instrument, machinery and equipment, parts and technology needed for its production.

SC is mainly engaged in manufacturing and selling steel products.

SC’s products mainly include: steel structure and steel wheel, etc.

SC sources its materials 90% from domestic market, and 10% from overseas market. SC sells 70% of its products in domestic market, and 30% to overseas market.

The buying terms of SC include Check, T/T, L/C 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:

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

Dongfeng Liuzhou Motor Co., Ltd.

Yunnan Lifan Junma Vehicle Co., Ltd.

FACCHINI S.A

Faw Harbin Lightweight Car Co., Ltd.

P.T. “SUMBER URIP SEJATI”

Staff & Office:

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

SC is known to have approx. 2,845 staff at present.

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

RELATED COMPANY

SC is known to have the following subsidiaries,

Xiamen Xinchangcheng Steel Structure Engineering Co., Ltd.

Xiamen Sunrise Wheel Co., Ltd.

Xiamen Sunrise Metal Co., Ltd.

Sichuan Sunrise Metal Co., Ltd.

Xiamen Topu Import & Export Co., Ltd.

Etc.

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:

China Construction Bank Xiamen Xinglin Sub-branch

AC#: 35101536001050002258

FINANCIALS

Consolidated Balance Sheet

Unit: CNY’000	As of Dec. 31, 2015	As of Dec. 31, 2016	As of Dec. 31, 2017
Cash	204,020	492,048	535,104
Trading financial assets	0	0	0
Accounts receivable	393,452	423,256	450,588
Notes receivable	66,674	45,851	69,316
Advances to suppliers	40,320	162,014	120,495
Interest receivable	3,466	5,194	2,625
Other receivable	14,305	22,800	27,804
Inventory	990,079	1,155,092	1,394,414
Non-current assets within one year	0	0	0
Other current assets	329,911	230,000	115,070
	------------------	------------------	------------------
Current assets	2,042,227	2,536,255	2,715,416
Long-term investments	0	22,848	15,274
Real estate investment	0	0	0
Fixed assets	756,726	769,334	725,345
Construction in progress	11,796	15,782	116,103
Project materials	0	0	0
Fixed assets in liquidation	0	0	0
Intangible assets	124,624	128,641	137,722
Goodwill	0	0	0
Long-term deferred expense	0	0	0
Deferred income tax assets	11,122	13,110	19,562
Other non-current assets	26,178	8,433	57,809
	------------------	------------------	------------------
Total assets	2,972,673	3,494,403	3,787,231
	=============	=============	=============
Short-term loans	606,039	633,876	666,300
Notes payable	190,938	596,295	705,502
Accounts payable	107,759	112,340	150,642
Payroll payable	138	210	303
Taxes payable	6,855	16,616	16,153
Interest payable	0	0	0
Advances from clients	23,239	43,534	127,064
Other payable	6,650	7,889	22,641
Other current liabilities	67,045	210,031	55,200
	------------------	------------------	------------------
Current liabilities	1,008,663	1,620,791	1,743,805
Non-current liabilities	214,552	58,825	192,126
	------------------	------------------	------------------
Total liabilities	1,223,215	1,679,616	1,935,931
Equities	1,749,458	1,814,787	1,851,300
	------------------	------------------	------------------
Total liabilities & equities	2,972,673	3,494,403	3,787,231
	=============	=============	=============

Consolidated Income Statement

Unit: CNY’000	As of Dec. 31, 2015	As of Dec. 31, 2016	As of Dec. 31, 2017
Revenue	1,283,207	1,414,951	1,991,149
Cost of sales	1,066,714	1,180,908	1,708,267
Business Taxes and Surcharges	4,494	12,807	15,280
Sales expense	66,196	69,073	89,572
Management expense	47,413	48,514	55,809
Finance expense	46,042	29,259	61,685
Asset impairment loss	15,974	18,030	13,003
Investment income	5,057	9,485	6,630
Non-operating income	4,699	20,098	179
Non-operating expense	1,714	714	474
Profit before tax	44,415	85,229	76,208
Less: profit tax	9,379	16,746	9,701
Profits	35,036	68,483	66,507

Important Ratios

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

	As of Dec. 31, 2015	As of Dec. 31, 2016	As of Dec. 31, 2017
*Current ratio	2.02	1.56	1.56
*Quick ratio	1.04	0.85	0.76
*Liabilities to assets	0.41	0.48	0.51
*Net profit margin (%)	2.73	4.84	3.34
*Return on total assets (%)	1.18	1.96	1.76
*Inventory / Revenue ×365	282 days	298 days	256 days
*Accounts receivable / Revenue ×365	112 days	110 days	83 days
*Revenue / Total assets	0.43	0.40	0.53
*Cost of sales / Revenue	0.83	0.83	0.86

FINANCIAL COMMENTS

PROFITABILITY: FAIRLY GOOD

The revenue of SC appears fairy good in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

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

LIQUIDITY: FAIR

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 appears large.

The accounts receivable of SC appears average.

The short-term loans of SC appear large

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

LEVERAGE: FAIRLY GOOD

The debt ratio of SC is average.

The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

SC is considered large-sized in its line with fairly stable financial conditions. Taking into consideration of SC’s general performance, reputation as well as market conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.22
UK Pound	1	INR 92.77
Euro	1	INR 80.34
CNY	1	INR 10.42

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

INFORMATION DETAILS

Analysis Done by :	DIV
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.