MIRA INFORM REPORT

Report No. :	493732
Report Date :	24.02.2018

IDENTIFICATION DETAILS

Name :	SEPPIC (SHANGHAI) CHEMICALS SPECIALiTIES CO., LTD.
Registered Office :	No. 59 Lane 1098 Shengli Road, Qingpu Industrial Zone, Shanghai, 201700, Pr
Country :	China
Date of Incorporation :	13.02.2006
Credibility Code :	91310000784260352L
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Registered business scope includes developing and manufacturing new medicine and vaccine adjuvant for human and animal health, sales of self-produced products and providing related technical services. Engaged in wholesaling, commission agent (except for auction), importing and exporting and other related services for vaccine adjuvant and vaccine adjuvant raw materials, industrial surfactants, antistatic agents (except drugs and dangerous goods), cosmetic excipients and additives, pharmaceutical excipients (except drugs) and nutritional supplements (does not involve state-owned trade management, referring goods with quota or need license, apply for permission according relevant provisions). (with permit if needed)
No. of Employees :	32

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 early2015, 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 and address

SEPPIC (SHANGHAI) CHEMICALS SPECIALiTIES CO., LTD.

No. 59 lane 1098 shengli road, qingpu industrial zone,

shanghai, 201700, PR CHINA

TEL: 86 (0) 21-69223466/64660149*1127

FAX: N/A

EXECUTIVE SUMMARY

INCORPORATION DATE : FEB. 13, 2006

Credibility Code : 91310000784260352L

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : JEAN-BAPTISTE DELLON (LEGAL REPRESENTATIVE)

STAFF STRENGTH : 32

REGISTERED CAPITAL : USD 2,300,000

BUSINESS LINE : DEVELOPING, MANUFACTURING AND SELLING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : SLOW BUT CORRECT

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

CNY - China Yuan Ren Min Bi

SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC The official body of issuing and renewing business license) on Feb. 13, 2006.

Company Status: Wholly foreign-owned enterprise

This form of business in PR China is defined as a legal person. It is a limited co. established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investor may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.

SC’s registered business scope includes developing and manufacturing new medicine and vaccine adjuvant for human and animal health, sales of self-produced products and providing related technical services. Engaged in wholesaling, commission agent (except for auction), importing and exporting and other related services for vaccine adjuvant and vaccine adjuvant raw materials, industrial surfactants, antistatic agents (except drugs and dangerous goods), cosmetic excipients and additives, pharmaceutical excipients (except drugs) and nutritional supplements (does not involve state-owned trade management, referring goods with quota or need license, apply for permission according relevant provisions). (With permit if needed)

SC is mainly engaged in developing, manufacturing and selling veterinary vaccine adjuvant.

Jean-Baptiste Dellon has been the legal representative and chairman of SC since 2017.

SC is known to have approx. 32 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Shanghai city. The detailed information of the area is unspecified.

Note: According to SC’s staff, SC has another operating office in Nanjing West Road, Shanghai City.

https://www.seppic.com/ The website belongs to SC’s parent company SEPPIC S.A., and includes the introduction about SC. The design is professional and the content is well organized. At present it is in Chinese, English, Japanese and other versions.

Email: Vera-Xueling.Shen@airliquide.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
2017-6-12	Legal representative	Armelle Levieux	Present one

HS Code: 3120940931

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

MAIN SHAREHOLDERS:

Name % of Shareholding

SEPPIC S. A. (France) 100

Add.: 22 Terrasse Bellini 92800 Puteaux France

Tel: (+33) (0)1 42 91 40 00

Fax: (+33) (0)1 42 91 41 41

l Legal Representative and Chairman:

Jean-Baptiste Dellon is currently responsible for the overall and daily management of SC.

Working Experience(s):

From 2017 to present Working in SC as legal representative and chairman

l Directors:

Han Jing

Marc Gillin

l Supervisor:

Nicole Felice

SC is mainly engaged in developing, manufacturing and selling veterinary vaccine adjuvant.

SC’s products mainly include: various kinds of veterinary vaccine adjuvant.

SC sources its materials 100% from France. SC sells its products both in domestic market and to the 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 T/T, L/C and Credit of 30-60 days.

Note: SC’s management declined to release its major customers and suppliers.

Industry code: 2660

Industry name: Special chemical products manufacturing

The gross domestic product of China in 2016 which is 74412.72 billion that is increased 6.7% than previous year.

In the first half of 2016, the added value of the chemical industry increased by 9.2% year on year, and the growth rate dropped 0.2 percentage points year on year. Among the main products, the output of ethylene is 9.2 million tons, increased by 8.8%; the output of plastics in primary form is 39.76 million tons, increased by 7.7%; the output of Synthetic rubber is 2.57 million tons, increased by 4.1%; the output of Synthetic fiber is 22.56 million tons, increased by 8.4%. the output of Caustic soda is 16.19 million tons, increased by 6.4%; the output of Soda ash is 12.68 million tons, increased by 0.9%. The output of chemical fertilizers is 37.19 million tons, increased by 1.4%.

Among them, the output of nitrogen fertilizer and potash fertilizer increased by 3.1% and 6.7% respectively, and the output of phosphate fertilizer decreased by 2%. The output of Pesticide is 1.88 million tons, increased by 4.3%. The output of Rubber tire cover tire is 457.23 million, increased by 9.1%. The output of Calcium carbide is of 12.58 million tons, increased by 2.4%

The output of all types of chemical products in the first half of 2016

(Unit: million tons)

SC is not known to have any subsidiary at present.

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.

Citibank (China) Shanghai Branch

AC#: 404003-1738818209

Relationship: Normal

SC’s management declined to release its financial details.

SC is considered small-sized in its line with a development history of 12 years. Due to lack of financial statements, we are unable to determine the maximum credit limit for SC.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.82
UK Pound	1	INR 90.40
Euro	1	INR 79.76
CNY	1	INR 10.21

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

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	SYL

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.