MIRA INFORM REPORT

Report No. :	499196
Report Date :	24.03.2018

IDENTIFICATION DETAILS

Name :	GUANGDONG KEYWA CHEMICAL TRADING CENTER CO., LTD.

Registered Office :	C1-9, C1-10, C1-11-1 Foshan Torch Innovation Park, No 13 Huabao Nan Rd Chancheng, Foshan, Guangdong Province 528051 Pr

Country :	China

Financials (as on) :	30.06.2017

Date of Incorporation :	18.12.2013

Unified Social Credit Code :	91440600086787683R

Legal Form :	Shares Limited Company

Line of Business :	Subject registered business scope includes investment in chemical trading markets; property leasing; selling dangerous chemicals, the third category of non-pharmaceutical precursor chemicals; development, wholesale and retail of chemical product; selling pesticides, fertilizers, agricultural equipment, agricultural products, agricultural chemicals; selling coal, fuel oil, vegetable oil; agricultural technology development services, agricultural technology transfer services, agricultural technology consulting, promotion, exchange services; warehousing management services; e-commerce; logistics information consulting; conference and exhibition services; advertising design, production, publishing, agency; business management consulting; importing and exporting goods and technology.

No. of Employees :	70

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	No Complaints

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

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	GUANGDONG KEYWA CHEMICAL TRADING CENTER CO., LTD.
CURRENT ADDRESS/ REGISTERED ADDRESS	C1-9, C1-10, C1-11-1 FOSHAN TORCH INNOVATION PARK, NO 13 HUABAO NAN RD CHANCHENG, FOSHAN, GUANGDONG PROVINCE 528051 PR CHINA
TEL. NO.	86 (0) 757-63812329
FAX NO.	86 (0) 757-63812328

EXECUTIVE SUMMARY

Date of Registration : december 18, 2013

UNIFIED SOCIAL CREDIT CODE : 91440600086787683R

LEGAL FORM : SHARES LIMITED COMPANY

CHIEF EXECUTIVE : wang zhigang (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 30,000,000

staff : 70

BUSINESS CATEGORY : TRADING

REVENUE : CNY 2,698,584,000 (FROM JAN. 1, 2017 TO JUN. 30, 2017)

EQUITIES : CNY 30,568,000 (AS OF JUN. 30, 2017)

WEBSITE : www.keywa.com

E-MAIL : service@keywa.com

PAYMENT : AVERAGE

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly stable

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 shares limited company of PRC with State Administration of Industry & Commerce (SAIC) under unified social credit code: 91440600086787683R.

SC’s Import and Export Enterprise Code: 4400086787683

SC’s registered capital: CNY 30,000,000

SC’s paid-in capital: CNY 30,000,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2016-8-11	Legal Representative	Fu Yongguo	Wang Zhigang
2016-8-11	Registration No./ Unified Social Credit Code	440600000032152	91440600086787683R

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

Name of Shareholder (s)	% of Shareholding
Guangzhou Langqi Industrial Co., Ltd.	35
Foshan Nanhai Tianhui Cosmetics Co., Ltd.	24
Guangzhou Lianguan Investment Co., Ltd.	20
Guangzhou Youlipusi Investment & Management Co., Ltd.	13
Yujiang Hexing Investment Service Center	5
Kaison (Guangzhou) Trading Co., Ltd.	3

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Wang Zhigang
General Manager	Jiang Jianhao
Director	Wu Shubo
	Fu Yan
	Huang Jianbin
Supervisor	Feng Zhimin
	Cheng Zhibin
	Zhang Zhaohui

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Guangzhou Langqi Industrial Co., Ltd. 35

Foshan Nanhai Tianhui Cosmetics Co., Ltd. 24

Guangzhou Lianguan Investment Co., Ltd. 20

Guangzhou Youlipusi Investment & Management Co., Ltd. 13

Yujiang Hexing Investment Service Center 5

Kaison (Guangzhou) Trading Co., Ltd. 3

Guangzhou Langqi Industrial Co., Ltd.

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

Date of Registration: June 20, 1978

Unified Social Credit Code: 914401011904864500

Chief Executive : Fu Yongguo

Registered Capital: CNY 522,944,300

Foshan Nanhai Tianhui Cosmetics Co., Ltd.

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

Date of Registration: September 5, 2003

Unified Social Credit Code: 91440605756453253M

Chief Executive : Pan Yuliang

Registered Capital: CNY 5,050,000

Guangzhou Lianguan Investment Co., Ltd.

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

Date of Registration: December 19, 2011

Unified Social Credit Code: 91440116587632233U

Chief Executive : Wang Junwen

Registered Capital: CNY 30,000,000

MANAGEMENT

Wang Zhigang, Legal Representative and Chairman

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

Gender: M

Nationality: China

Qualification: University

Working experience (s):

At present, working in SC as legal representative and chairman

Jiang Jianhao, General Manager

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

Gender: M

Nationality: China

Qualification: University

Working experience (s):

At present, working in SC as general manager, also working in Guangzhou Keywa Co., Ltd. as legal representative

Director

-----------

Wu Shubo

Fu Yan

Huang Jianbin

Supervisor

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

Feng Zhimin

Cheng Zhibin

Zhang Zhaohui

BUSINESS OPERATION

SC’s registered business scope includes investment in chemical trading markets; property leasing; selling dangerous chemicals, the third category of non-pharmaceutical precursor chemicals; development, wholesale and retail of chemical product; selling pesticides, fertilizers, agricultural equipment, agricultural products, agricultural chemicals; selling coal, fuel oil, vegetable oil; agricultural technology development services, agricultural technology transfer services, agricultural technology consulting, promotion, exchange services; warehousing management services; e-commerce; logistics information consulting; conference and exhibition services; advertising design, production, publishing, agency; business management consulting; importing and exporting goods and technology.

SC is mainly engaged in selling chemicals.

SC’s products mainly include: Daily Chemicals, Agrochemicals, Petrochemicals, Environmental Products, Medical Chemicals, Food Chemicals, Energy Chemicals, Plastic Chemicals, etc.

SC sources the products 100% from domestic market, mainly Guangdong. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.

The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.

*Major Customers*

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

Heranba Industries Ltd.

Bharat Jyoti Impex

Staff & Office:

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

SC is known to have approx. 70 staff at present.

SC rents an area as its operating office, but the detailed information is unknown.

RELATED COMPANY

SC is known to have 2 subsidiaries at present.

Guangzhou Keywa Co., Ltd.

Shanghai Keywa Industrial Co., Ltd.

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 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.

BANKING

Basic Bank:

China Everbright Bank Guangzhou Huangpu Avenue Sub-branch

AC#: 38830188000016663

FINANCIALS

Financial Summary

Unit: CNY’000	As of Dec. 31, 2015	As of Dec. 31, 2016	As of Jun. 30, 2017
Total assets	101,383	744,652	1,459,195
	-------------	-------------	-------------
Total liabilities	76,215	715,220	1,428,627
Equities	25,168	29,432	30,568
	-------------	-------------	-------------
Unit: CNY’000	As of Dec. 31, 2015	As of Dec. 31, 2016	From Jan. 1, 2017 to Jun. 30, 2017
Revenue	877,068	4,071,442	2,698,584
Profits	-111	4,264	1,135

Important Ratios

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

	As of Dec. 31, 2015	As of Dec. 31, 2016	As of Jun. 30, 2017
*Liabilities to assets	0.75	0.96	0.98
*Net profit margin (%)	-0.01	0.10	0.04
*Return on total assets (%)	-0.11	0.57	0.08
*Revenue/Total assets	8.65	5.47	1.85

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

The revenue of SC appears fairly good in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

LIQUIDITY: AVERAGE

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

LEVERAGE: FAIR

The debt ratio of SC is fairly high.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly Stable.

CONCLUSIONS

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.13
UK Pound	1	INR 91.95
Euro	1	INR 80.34
CNY	1	INR 10.30

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

INFORMATION DETAILS

Analysis Done by :	VIV

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.