MIRA INFORM REPORT

Report No. :	507705
Report Date :	07.05.2018

IDENTIFICATION DETAILS

Name :	Chang Xing Rubber (Shanghai) LLC
Registered Office :	No. 88 Zhongchen Road, Songjiang District, Shanghai City, 201613 Pr
Country :	China
Date of Incorporation :	07.08.2003
Credibility Code :	91310000753155429A
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Subject includes development, manufacture and processing of fluorine rubber, silica gel, NBR, ethylene propylene rubber, acrylic acid rubber, high saturation hydrogenated butadiene rubber, SBR, butyl rubber, hypalon rubber, epoxy chloropropane rubber, ethylene acrylic acid copolymer and other synthetic rubber, gross rubber related products; sales of own products, and providing after-sales service
No. of Employees :	175

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 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

Chang Xing Rubber (Shanghai) LLC

NO. 88 ZHONGCHEN ROAD, SONGJIANG DISTRICT,

SHANGHAI CITY, 201613 PR CHINA

TEL: 86 (0) 21-67764000*2601/2602 FAX: N/A

EXECUTIVE SUMMARY

INCORPORATION DATE : AUG. 7, 2003

Credibility Code : 91310000753155429A

REGISTERED LEGAL FORM : Wholly foreign-owned enterprise

CHIEF EXECUTIVE : wu guoxian (legal representative)

STAFF STRENGTH : 175

REGISTERED CAPITAL : USD 12,700,000

BUSINESS LINE : TRADING AND MANUFACTURING

TURNOVER : N/A

EQUITIES : N/A

PAYMENT : Slow but correct

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : 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 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 Aug. 7, 2003.

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 development, manufacture and processing of fluorine rubber, silica gel, NBR, ethylene propylene rubber, acrylic acid rubber, high saturation hydrogenated butadiene rubber, SBR, butyl rubber, hypalon rubber, epoxy chloropropane rubber, ethylene acrylic acid copolymer and other synthetic rubber, gross rubber related products; sales of own products, and providing after-sales service (if needed with permit).

SC is mainly engaged in manufacturing and selling rubber.

Wu Guoxian is legal representative and executive director of SC at present.

SC is known to have approx. 175 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in Shanghai. Detailed premise information is not available at present.

http://www.cxrubber.com/ The design is professional and the content is well organized. At present it is in Chinese version.

Email: eric.chen@cxrubber.com.cn

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
Unknown	Registration no.	310000400351658	Credibility Code:  91310000753155429A

HS Code: 3118941001

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

MAIN SHAREHOLDERS:

Name Amount (USD) % of Shareholding

Rotek International Group L.L.C (America) 6,200,000 48.82

Sovereign Quality Limited 6,500,000 51.18

l Legal Representative and Executive Director:

Wu Guoxian is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and executive director;

Also working in Prosell (Shanghai) Trading Company and Bioicone Medical Materials (Shanghai) Trading Company as legal representative.

l Supervisor:

Liao Zhongyi

SC is mainly engaged in manufacturing and selling rubber.

SC’s products mainly include: EPM, EPDM, AEM, SBR, IIR and NBR, etc.

SC sources its materials from domestic market and overseas market. SC sells its products in domestic market, and 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.

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

Trademark & Patents

Registration No.	8920789	8681094	4171296
Registration Date	2011-12-14	2011-12-07	2007-08-14
Trademark Design

Industry code: 2910

Industry name: Rubber products industry

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

Rubber products industry is one of the important basic industries of the national economy. It is widely used in mining, rail transit, construction, machinery, aviation, electronics, military and other industrial fields. Many rubber products can be directly used in daily life, cultural and sports activities and health care and other aspects as final products.. With the continuous economic development, China's rubber products industry has developed rapidly, the market demand is relatively strong

National Bureau of Statistics data show that in 2013 China's rubber and plastic products above designated size realized main business revenue of 2731.06 billion yuan, an increase of 13.3% over the previous year, total profit of 171.63 billion yuan, an increase of 18.3% year-on-year. In 2014, the main business income is 2956.99 billion yuan, an increase of 8.0% over the previous year; and the total profit was 178.2 billion yuan, an increase of 2.8% over the previous year. In 2015, the main business income is 3086.66 billion yuan, an increase of 4.1% over the previous year; and the total profit was 188.35 billion yuan, an increase of 4.6% over the previous year.

Prosell (Shanghai) Trading Company

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

Incorporation Date: 2008-01-23

Credibility Code: 913100006694255452

Legal representative: Wu Guoxian

Bioicone Medical Materials (Shanghai) Trading Company

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

Incorporation Date: 2010-09-17

Credibility Code: 91310000561867499Q

Legal representative: Wu Guoxian

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.

SC’s bank details are not available at present.

SC’s accountant refused to release the financial information.

SC is considered medium-sized in its line with a development history of 15 years.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.77
UK Pound	1	INR 90.58
Euro	1	INR 79.97
CNY	1	INR 10.56

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	NIT

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.