MIRA INFORM REPORT

Report No. :	497600
Report Date :	17.03.2018

IDENTIFICATION DETAILS

Name :	HUNTSMAN CHEMICAL TRADING (SHANGHAI) LIMITED
Registered Office :	Room 511b, No. 118 Xinling Road, China (Shanghai), Pilot Free Trade Zone, 200131, Pr
Country :	China
Financials (as on) :	31.12.2015
Date of Incorporation :	07.07.2000
Credibility Code:	913100006074189487
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	SC’s registered business scope includes international trade, transit trade, trade and trade agency among enterprises in the Free Trade Zone mainly in polyurethane materials, fine chemicals, additive, catalyst, petrochemical, packaging materials and other related chemical and industrial products; Simple commercial processing in Free Trade Zone; business consulting in Free Trade Zone; Wholesaling, import& export polyurethane materials, fine chemicals, additive, catalyst, petrochemical, etc., commission agent (excluding auction), and other related service; supplying management consulting for enterprise in its Group (in accordance with the special permit).
No. of Employees :	122

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 :	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 and address

HUNTSMAN CHEMICAL TRADING (SHANGHAI) LIMITED

ROOM 511B, NO. 118 XINLING ROAD, CHINA (SHANGHAI)

PILOT FREE TRADE ZONE, 200131, PR CHINA

TEL: 86 (0) 21-33576588/24037398 FAX: 86 (0) 21-24037000

EXECUTIVE SUMMARY

INCORPORATION DATE : JUL. 07, 2000

CREDIBILITY CODE : 913100006074189487

REGISTERED LEGAL FORM : wholly foreign-owned enterprise

CHIEF EXECUTIVE : DAVID RICHARD MING (legal representative)

STAFF STRENGTH : 122

REGISTERED CAPITAL : USD 80,200,000

BUSINESS LINE : TRADING

TURNOVER : cny 1,697,714,000 (as of dec. 31, 2015)

EQUITIES : cny 698,958,000 (as of dec. 31, 2015)

PAYMENT : average

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : fairly stable (as of year 2015)

OPERATIONAL TREND : fairly STEADY (as of year 2015)

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 Renminbi

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 July 07, 2000.

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 international trade, transit trade, trade and trade agency among enterprises in the Free Trade Zone mainly in polyurethane materials, fine chemicals, additive, catalyst, petrochemical, packaging materials and other related chemical and industrial products; Simple commercial processing in Free Trade Zone; business consulting in Free Trade Zone; Wholesaling, import& export polyurethane materials, fine chemicals, additive, catalyst, petrochemical, etc., commission agent (excluding auction), and other related service; supplying management consulting for enterprise in its Group (in accordance with the special permit).

SC is mainly engaged in selling of chemical products.

David Richard Ming has been the legal representative and chairman of SC since 2017.

SC is known to have approx. 122 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office in China (Shanghai) Pilot Free Trade Zone. Detailed premise information is not known at present.

www.huntsman.com this website belongs to Huntsman. The design is professional and the content is well organized. At present it is in both English and Chinese versions.

E-mail: sarah_huang@huntsman.com

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2014-04-09	Legal Rep.	Wang Shunsheng	Pan Lvmin
2015-11-06		Pan Lvmin	Xing Kechang
Unknown	Registration Number	310115400069531	Credibility Code: 913100006074189487
2017-07-14	Legal Rep.	Xing Kechang	David Richard Ming

Import/Export License Code: 3100607418948

HS Code: 3122442201

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

MAIN SHAREHOLDER(S):

Name % of Shareholding

Top Morale Limited (Hong Kong) 100

CR No.: 1177232

Date of Incorporation: 18-OCT.-2007

Company Status: Private Company Limited by Shares

Active Status: Live

Legal representative and chairman:

David Richard Ming is currently responsible for the overall management of SC.

Working Experience(s):

From 2017 to presentWorking in SC as legal representative and chairman.

Directors:

Zhuang Junling

Ding Lin

Feng Aiyu

Chan Kin Keong

Supervisor:

Jin Hua

SC is mainly engaged in selling of chemical products.

SC’s products mainly include: polyurethane, coloring agent, surfactant, etc.

SC sources 80% of its materials from domestic market, and 20% of its materials from overseas market. SC sells 80% of its products in domestic market, and 20% of its products 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 T/T, L/C, Check and Credit of 30-60 days.

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

Trademark & Patents: N/A

Industry code: 5100

Industry name: Wholesale Industry

The gross domestic product of China in 2016 which is 74,412.72 billion that is increased 6.7% than previous year.

According to National Bureau of Statistics data released, at the end of 2015, there are 91,819 wholesale enterprises in China. In 2015, total assets of wholesale industry was 18119.854 billion Yuan, and increased by 2.81% compared with 2014; total liabilities was 13201.39 billion Yuan, and increased by 1.42% compared with 2014; main business income was 35848.13 billion Yuan, and declined by 7.45% compared with 2014; main business profit was 2237.612 billion Yuan, and declined by 1.49% compared with 2014.

Huntsman Chemistry R&D Center (Shanghai) Co., Ltd.

Huntsman Advanced Chemical Materials (Nanjing) Co., Ltd.

Huntsman Advanced Chemical Materials (Guangdong) Co., Ltd.

Huntsman Polyurethanes (China) Ltd.

Etc.

SC is known to invest in the following company:

Nanjing Jinling Huntsman New Material Co., Ltd.

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

Incorporation Date: Nov. 26, 2012

Credibility Code: 913201930579579974

Legal Representative: Zhang Chunsheng

Registered Capital: CNY 1,554,590,400

Legal Form: Limited Liabilities Co.

Branch:

Huntsman Chemical Trading (Shanghai) Limited Minghang Branch

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

Credibility Code: 91310000MA1GBKNH3L

Principal: SHENGENSHAN

Incorporation date: 2017-04-28

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 records 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) Co., Ltd. Shanghai Branch

AC# 1749719237

Relationship: Normal

Financial Summary

Unit: CNY’000	As of Dec. 31, 2014	As of Dec. 31, 2015
Total assets	1,652,563	1,617,363
	=============	=============
Total liabilities	925,840	918,405
Equities	726,723	698,958
	--------------------	--------------------
Total liabilities & equities	1,652,563	1,617,363
	=============	=============

Unit: CNY’000	as of Dec. 31, 2014	as of Dec. 31, 2015
Turnover	1,873,154	1,697,714
Profit before tax	82,883	-12,767
Profits	68,312	-12,767

Note: we did not find SC’s detailed and latest financial report.

Important Ratios

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

	as of Dec. 31, 2014	as of Dec. 31, 2015
*Liabilities to assets	0.56	0.57
*Net profit margin (%)	3.65	-0.75
*Return on total assets (%)	4.13	-0.79
*Turnover/Total assets	1.13	1.05

PROFITABILITY: FAIR

The turnover of SC maintains good.

SC’s net profit margin is average in 2014, but it turns to be fair in 2015.

SC’s return on total assets is average in 2014, but it turns to be fair in 2015.

SC’s turnover maintains 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: Fairly Stable. (AS OF YEAR 2015)

SC has developed in its line for 18 years. Taking consideration of all factors above

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.87
UK Pound	1	INR 90.49
Euro	1	INR 79.91
CNY	1	INR 10.28

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	KET

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.