MIRA INFORM REPORT

Report No. :	504648
Report Date :	30.04.2018

IDENTIFICATION DETAILS

Name :	LANZHOU KEYLEADER IMP & EXP CO.,LTD.
Registered Office :	Comprehensive Bonded Zone, Lanzhou New Area, Lanzhou City, Gansu Province
Country :	China
Financials (as on) :	31.12.2016
Date of Incorporation :	29.07.2014
Unified Social Credit Code :	916201003968632660
Legal Form :	Limited Liabilities Company
Line of Business :	· Subject is mainly engaged in sales of agriculture products, including spices, poppy seeds, sunflower seeds, bitter almonds, beans, pumpkin seeds and hemp seeds, etc. · Subject can supply various kinds of agricultural products according to customers' needs.
No. of Employees :	10

RATING & COMMENTS

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

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
Payment Behaviour :	Slow
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

ORDER DETAILS & INVESTIGATION RESULTS

-	Order Information	Verification
Name(English)	LANZHOU KEYLEADER IMP & EXP CO.,LTD	Correct
Address (English)	ZONG HE BAO SHUI QU NEI LANZHOU NEW AREA, LANZHOU GANSU	Subject's warehouse address and registered address
Tel	86931 8438676	Correct

ABSTRACT

BASIC INFORMATION

Name (English)	LANZHOU KEYLEADER IMP & EXP CO.,LTD.
Unified Social Credit Code	916201003968632660
AIC registration No.	620100200134075
National Organization Code	396863266
Company Status	Operational
Executive	Fang Yusheng
Registered Capital	CNY 10,000,000.00
Date of Establishment	2014-07-29
Employee	10
Company Size	Small
SIC (China)	5119,Wholesale of Other Agricultural & Livestock Products
Import and Export Enterprise Code	6200396863266
Import/Export Permit	Yes

CONTACTS

Tel	(86 931)8438676
E-mail	gangsuyusheng@outlook.com
Address	Rm 1904, Haihong International Center, No.1683 Yanbei Rd, Chengguan Dist, Lanzhou City, Gansu Province(Office)
Address Post code	730010
Ownership	Rented

GENERAL COMMENTS

RISK ANALYSIS

Established in Jul. 2014 with registered capital of CNY 10,000,000.00, SC is mainly engaged in sales of agriculture products. With years of operation, it has accumulated certain industry experience. Invested by natural individuals, subject has poor financing capacity and risk-resisting capacity.

According to Subject’s current financial information, its operating income of 2016 decreases by 63.60% over that of 2015, indicating its business development capacity needs to be improved. Low net profit margin of 2016 reflects subject needs to improve its profitability. Low turnover of total assets of 2016 indicates Subject has poor asset operation capacity. With low liabilities to assets ratio of 2016, subject has good long-term solvency.

REGISTRATION INFORMATION

Unified Social Credit Code	916201003968632660
AIC registration No.	620100200134075
Date of Establishment	2014-07-29
Registered Address	Comprehensive Bonded Zone, Lanzhou New Area, Lanzhou City, Gansu Province
Registry	Administration Bureau for Industry and Commerce - Lanzhou New Area, Lanzhou City
Legal Representative	Fang Yusheng
Legal Form	Limited Liabilities Company
Registered Capital	CNY 10,000,000.00
Latest Year of Annual Report	2016
Operation duration	2014-07-29 to 2034-08-27
Business Scope	Processing and export of poppy seeds, other agricultural products and goods; Self-running and agency of import/export of cargoes and technologies; (Of the above business projects where a permit is required, permit shall be obtained.)

REGISTRATION CHANGES

-	Date	Item Changed	From	To
1	2017-04-14	Registered Address	South of Weishiliu Rd, East of Jingshi Rd, Lanzhou New Area, Lanzhou City, Gansu Province	Comprehensive Bonded Zone, Lanzhou New Area, Lanzhou City, Gansu Province
2	2017-04-14	Shareholder	Du Zhaokun and Fang Yusheng	Fang Yusheng, Du Zhaokun and Cai Xianjing

SHAREHOLDER INFORMATION

-	Name	% Ownership	Capital Contributed	Currency	Investment Way	Paid-in %	Country
1	Fang Yusheng	45.00	4,500,000.00	CNY	-	-	China
2	Du Zhaokun	45.00	4,500,000.00	CNY	-	-	China
3	Cai Xianjing	10.00	1,000,000.00	CNY	-	-	China
Total		100.0	10,000,000

ULTIMATE HOLDING

-	Ultimate Shareholder	Investment Way
1	Fang Yusheng | Du Zhaokun	-

English Name	Fang Yusheng | Du Zhaokun
Country	China
Type	Natural person shareholders
Note	Fang Yusheng (方雨生) (45%) | Du Zhaokun (45%) -->LANZHOU KEYLEADER IMP & EXP CO.,LTD.

BRANCHES

No branch information of subject is searched from database.

INVESTMENT IN OTHER COMPANIES

No investment information of subject is searched from database.

MANAGEMENT

LEGAL REPRESENTATIVE

Name	Fang Yusheng
Country	China
Position	Executive Director
Gender	Male
Age	55

INVOLVEMENT IN OTHER COMPANIES

-	Name (English)	License Status	Legal Representative	Position	Type of Engagement
1	GANSU YUSHENG AGRICULTURAL PRODUCTS CO.,LTD	Operational	YES	Executive Director	Directorship; Investment(98.64%)

Name (English)	GANSU YUSHENG AGRICULTURAL PRODUCTS CO.,LTD
License Status	Operational
Name Of Legal Representative	Fang Yusheng
Registered Capital	CNY 3,680,000.00
Country	China
Registration No.	620000200024169
Unified Social Credit Code	91620102745861462A
Legal Form	Limited Liabilities Company
Share Holding	3,630,000.00
Currency Of Share Holding	CNY
Way of Investment	Capital
% Ownership	98.64
Position	Executive Director
Date of Establishment	2003-02-10

MANAGEMENT

-	Name	Position	Gender
1	Fang Yusheng	Executive Director	Male

DIRECTORS AND SUPERVISORS

-	Name	Position	Gender
1	Fang Yusheng	Executive Director	Male
2	Du Zhaokun	Supervisor	Male

JUDICIAL INFORMATION

DEFAULT EXECUTED PARTY

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

SUBJECT AS EXECUTED PARTY

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

CIVIL & COMMERCIAL TRIAL PROCESS

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

CIVIL & COMMERCIAL JUDGMENT DOCUMENT

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

ADMINISTRATIVE ILLEGAL

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

OPERATION INFORMATION

MAIN BUSINESS

Main Business	Sales of agriculture products
Products & Service	SC is mainly engaged in sales of agriculture products, including spices, poppy seeds, sunflower seeds, bitter almonds, beans, pumpkin seeds and hemp seeds, etc. Subject can supply various kinds of agricultural products according to customers' needs.

OPERATION FACILITIES

Business Address	Rm 1904, Haihong International Center, No.1683 Yanbei Rd, Chengguan Dist, Lanzhou City, Gansu Province(Office)
Tel	(86 931)8438676
E-mail	gangsuyusheng@outlook.com
Post code	730010
Environment	Downtown
Ownership	Rented
Traffic Condition	Convenient

Business Address

Comprehensive Bonded Zone, Lanzhou New Area, Lanzhou City, Gansu Province(Warehouse)

SALES INFORMATION

Region	Products		Customer Type	Number of Customers	Payment Terms	Region	Percentage
International	Agricultural products, etc		Food factories, traders, etc	Over 10	L/C, T/T, etc	Asia, Europe and America, etc.	100
OTHER INFORMATION		SC's products are mainly exported to food factories, traders, etc from Latvia, India, Germany, Russian Federation, the United Kingdom, the Netherlands, Poland and so on. Its products are mainly sold directly.

PURCHASE INFORMATION

Region	Main Products Purchased		Number of Suppliers	Payment Terms	Region	Percentage
Domestic	Agricultural products, office supplies, etc.		Over 10	Credit payment, immediate payment, etc	All over China	100
OTHER INFORMATION		SC's purchasing business is mainly developed in Northwest China. Currently it has stable purchasing channels and its suppliers include poppy growers and traders, etc.

NOTE TO CREDIT RECORD

Note	Subject’s staff was cautious and refused to disclose the information of its suppliers due to business secrecy. The relevant information is unavailable through public channels. Hence, the company’s payment history can’t be provided in the report.

ELECTRICITY CONSUMPTION RECORD

No electricity consumption record of subject can be obtained as the electricity consumer may not be filed with subject's name.

QUALIFICATIONS & TRENDS

TRADEMARKS

-	Name	Image	Registration No.	International Classification	Country
1	四方牧场	-	26936083	29	China

EXPORT/IMPORT PERMIT

EXPORT/IMPORT PERMIT

Yes

IMPORT / EXPORT DETAILS

2016 Import / Export Volume (USD 1,000)
Import Volume	Export Volume
-	3,046.00

2016 Exporting Regions (USD 1,000)
Exporting Regions	Export Volume
India	1,101
Latvia	901
Germany	263
the Netherlands	564
UK	158
the Netherlands	57

2016 Exported Products (USD 1,000)
Exported Products	Export Volume
Poppy seeds	3,046

2015 Import / Export Volume (USD 1,000)
Import Volume	Export Volume
-	8,258.00

2015 Exporting Regions (USD 1,000)
Exporting Regions	Export Volume
India	6,052
Poland	634
the Netherlands	541
Russian Federation	468
Germany	379
Other countries	185

2015 Exported Products (USD 1,000)
Exported Products	Export Volume
Poppy seeds	8,258

EMPLOYEE

Employee Number	10
OTHER INFORMATION	The above information was confirmed by Subject's staff.

ABNORMAL TAX PAYER

As of the reporting date, no related record about subject is found through below sources:

A. Website of Tax Bureau of China;

B. Website of local Tax Bureau of subject's location;

C. Taxpayer information of database.

TAX ARREARS LIST

As of the reporting date, no related record about subject is found through below sources:

A. Website of Tax Bureau of China;

B. Website of local Tax Bureau of subject's location;

C. Taxpayer information of database.

DEBT ARREARS LIST

As of the reporting date, no related record about subject is found through below sources:

A. Major telecommunication operators of China;

B. Telecommunication information of database.

FINANCIAL INFORMATION

DETAILED FINANCIAL INFORMATION (UNIT: CNY 1,000)

Financial Note: Due to the lack of a clear government policy regarding the transparency of enterprise financial information, some financial items might be missing in the financial statements, causing possible inequality between the sum of the provided items and the provided total numbers.

Assets
Year	2015-12-31	2016-12-31
Report Type	Annual Report	Annual Report
Statement Type	Individual	Individual
Source	AIC	AIC
Audited or Not	Unknown	Unknown
Total Assets	24,501	26,804
Liabilities
Year	2015-12-31	2016-12-31
Total Liabilities	9,200	11,478
Total Owner’s Equity	15,301	15,326
Total Liabilities and Owner's Equity	24,501	26,804

Income Statement
Year	2015-12-31	2016-12-31
Operating Income	51,061	18,586
Total Profit	13,478	34
Income Tax	3,369	9
Net Profit	10,109	25

GROWTH RATE OF MAJOR FINANCIAL

	2015	Growth(%)	2016
Operating Income	51,061	-63.60	18,586
Total Assets	24,501	9.40	26,804
Total Profit	13,478	-99.75	34
Net Profit	10,109	-99.75	25
Total Liabilities	9,200	24.76	11,478
Total Owner’s Equity	15,301	0.16	15,326

IMPORTANT RATIO

Profitability	2015	2016
Return on net assets (%)	66.07	0.16
Return on total assets (%)	41.26	0.09
Net profit margin (%)	19.80	0.13
Operation capacity	2015	2016
Turnover of total assets	2.08	0.69
Solvency	2015	2016
Liabilities to assets ratio (%)	37.55	42.82
Development capacity	2015	2016
Yearly Growth of Operating Income (%)	-	-63.60
Yearly growth of total assets (%)	-	9.40

FINANCIALS & ANALYSIS

Financial Note

1. Subject’s detailed financial information of 2015 and 2016 is unavailable through all available channels. Subject’s staff was contacted but declined to provide relevant financial information. Hence only Subject’s financial summaries of 2015 and 2016 obtained from AIC source are provided for client’s reference. 2. Subject’s operating income of 2016 decreases significantly over that of 2015 mainly due to the significantly decreased orders.

INDUSTRY INFORMATION

INDUSTRY CODE

SIC (China)	5119,Wholesale of Other Agricultural & Livestock Products 【Major】
ISIC	4620,Wholesale of agricultural raw materials and live animals
NACE	46.2,Wholesale of agricultural raw materials and live animals

INDUSTRY FINANCIAL AVERAGE

-	2015	Subject	Best(10%)	Average	Worst(10%)
Solvency	Liabilities to Assets Ratio (%)	37.55	59.95	70.85	98.10
	Current ratio	-	1.49	0.90	0.37
	Quick ratio	-	0.94	0.56	0.23
Development Capacity	Yearly Growth of Operating Income (%)	-	6.66	4.14	0.90
	Yearly Growth of Gross Profit (%)	-	6.84	3.96	-1.64
	Yearly Growth of Total Assets (%)	-	9.54	5.22	-1.53
Profitability	Return on net assets (%)	66.07	9.09	3.51	-6.65
	Return on total assets (%)	41.26	5.49	2.80	-5.23
	Gross profit margin (%)	-	9.45	3.87	0.72
Operation Capacity	Turnover of total assets	2.08	1.98	0.90	0.09
	Turnover of current assets	-	3.60	1.80	0.36
	Turnover days of account receivable	-	16.08	34.42	170.61

-	2016	Subject	Best(10%)	Average	Worst(10%)
Solvency	Liabilities to Assets Ratio (%)	42.82	58.15	69.43	100.06
	Current ratio	-	1.45	0.88	0.38
	Quick ratio	-	0.91	0.55	0.24
Development Capacity	Yearly Growth of Operating Income (%)	-63.60	6.46	4.06	0.92
	Yearly Growth of Gross Profit (%)	-	6.63	3.88	-1.67
	Yearly Growth of Total Assets (%)	9.40	9.25	5.12	-1.56
Profitability	Return on net assets (%)	0.16	8.82	3.44	-6.78
	Return on total assets (%)	0.09	5.33	2.74	-5.34
	Gross profit margin (%)	-	9.17	3.79	0.73
Operation Capacity	Turnover of total assets	0.69	1.92	0.88	0.09
	Turnover of current assets	-	3.49	1.76	0.37
	Turnover days of account receivable	-	15.60	33.73	174.02

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.78
UK Pound	1	INR 92.89
Euro	1	INR 80.74
CNY	1	INR 10.48

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

INFORMATION DETAILS

Analysis Done by :	VAR
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.