MIRA INFORM REPORT

Report No. :	510844
Report Date :	25.05.2018

IDENTIFICATION DETAILS

Name :	SHANDONG DACHENG BIOCHEMICAL TRADING CO.,LTD.
Registered Office :	No. 222, Changguo East Road, Zhangdian District, Zibo City, Shandong Province
Country :	China
Date of Incorporation :	19.04.2017
Unified Social Credit Code :	91370303MA3DHDRC2Q
Legal Form :	Limited Liabilities Company
Line of Business :	Subject is mainly engaged in sales of pesticides. Its products are mainly insecticide, herbicide, bactericide, plant growth regulator, etc. and they are mainly used in agriculture.
No. of Employees :	Not Available

RATING & COMMENTS

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

MIRA’s Rating :

NB

Credit Rating	Explanation	Rating Comments
NB	New Business	No recommendation can be done due to business in infancy stage

Status :	New Business
Payment Behaviour :	Unknown
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)	Shandong Dacheng Biochemical Trading Co. Ltd	Correct
Address (English)	No. 222, Changguo East Road, Zhangdian District Zibo City, Shandong Province	Registered address of subject.
Tel	+86 533 2118939	Vacant number
Fax	+86 533 2111999	Correct

ABSTRACT

BASIC INFORMATION

Name (English)	SHANDONG DACHENG BIOCHEMICAL TRADING CO.,LTD.
Unified Social Credit Code	91370303MA3DHDRC2Q
AIC registration No.	370303200204211
National Organization Code	MA3DHDRC2
Company Status	Operational
Executive	Sun Jiangang
Registered Capital	CNY 5,000,000.00
Date of Establishment	2017-04-19
Company Size	Microenterprise
SIC (China)	5167,Wholesale of Pesticide
Import and Export Enterprise Code	3700MA3DHDRC2
Import/Export Permit	Yes

CONTACTS

Tel	(86 533)2118996
Fax	(86 533)2111999
Address	No. 25 Honggou Road, Zhangdian Dist, Zibo City, Shandong Province(Office)
Address Post code	255075
Ownership	Rented

GENERAL COMMENTS

RISK ANALYSIS

Established in Apr. 2017 with the registered capital of CNY 5,000,000.00, subject is mainly engaged in sales of pesticides. With short history, the company has accumulated limited industry experience. Its shareholder can provide certain market background and technical support for SC, which is good for its development. The development of the company remains to be seen.

REGISTRATION INFORMATION

Unified Social Credit Code	91370303MA3DHDRC2Q
AIC registration No.	370303200204211
Date of Establishment	2017-04-19
Registered Address	No. 222, Changguo East Road, Zhangdian District, Zibo City, Shandong Province
Registry	Administration Bureau for Industry and Commerce – Zhangdian District, Zibo City, Shandong Province
Legal Representative	Sun Jiangang
Legal Form	Limited Liabilities Company
Registered Capital	CNY 5,000,000.00
Latest Year of Annual Report	2017
Operation duration	Perpetual
Business Scope	Import and export of goods; Sales of pesticides (excluding hazardous, monitoring and precursor chemicals); Freight transport

REGISTRATION CHANGES

-	Date	Item Changed	From	To
1	2017-11-21	Registered address	No. 25 Honggou Road, Zhangdian Dist, Zibo City, Shandong Province	No. 222, Changguo East Road, Zhangdian District, Zibo City, Shandong Province
2	2017-10-27	Legal representative	Zhang Zhenghu	Sun Jiangang
3	2017-07-07	Legal representative	Sun Jiangang	Zhang Zhenghu

SHAREHOLDER INFORMATION

-	Name	% Ownership	Capital Contributed	Currency	Investment Way	Paid-in %	Country
1	SHANDONG DACHENG BIO-CHEMICAL CO.,LTD	100.00	5,000,000.00	CNY	Capital	-	China
Total		100.0	5,000,000

ENTITY SHAREHOLDER

Name (English)	SHANDONG DACHENG BIO-CHEMICAL CO.,LTD
Country	China
Legal Representative	Zhang Zhenghu
Registration No.	370303200128546
Unified Social Credit Code	91370303MA3C52532Y
Date of Establishment	2015-12-31
Legal Form	Limited Liabilities Company
Registered Capital	CNY 100,000,000.00
Status	Operational
Registered Address	Zhangdian East Chemical Zone, Hutian Sub-district Office, Zhangdian Dist, Zibo City, Shandong Province

ULTIMATE HOLDING

-	Ultimate Shareholder	Investment Way
1	Guo Xingguo	-

English Name	Guo Xingguo
Country	China
Type	Natural person shareholder
Note	Guo Xingguo -->65.00% Hebei Jitai Investment Co., Ltd. -->60.00% SHANDONG DACHENG BIO-CHEMICAL CO.,LTD -->100.00% SHANDONG DACHENG BIOCHEMICAL TRADING CO.,LTD.

BRANCHES

No branch information of subject is searched out from database.

INVESTMENT IN OTHER COMPANIES

No investment information of subject is searched out from database.

MANAGEMENT

LEGAL REPRESENTATIVE

Name	Sun Jiangang
Position	General Manager
Gender	Male
Age	45

INVOLVEMENT IN OTHER COMPANIES

-	Name (English)	License Status	Legal Representative	Position	Type of Engagement
1	Shandong Dacheng Mengbang Special Fertilizer Co., Ltd.	Operational	NO	Director	Directorship; Investment(20.00%)

Name (English)	Shandong Dacheng Mengbang Special Fertilizer Co., Ltd.
License Status	Operational
Name Of Legal Representative	Huang Jianjun
Registered Capital	CNY 6,000,000.00
Country	China
Registration No.	370303200117616
Unified Social Credit Code	91370303MA3BXKPL8B
Legal Form	Limited Liabilities Company
Share Holding	1,200,000.00
Currency Of Share Holding	CNY
% Ownership	20.00
Position	Director
Date of Establishment	2015-10-21

MANAGEMENT

-	Name	Position	Gender
1	Sun Jiangang	General Manager	Male
2	Yao Yinjuan	Executive Director	-

DIRECTORS AND SUPERVISORS

-	Name	Position	Gender
1	Yao Yinjuan	Executive Director	-
2	Li Bo	Supervisor	-

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 RECORDS

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 pesticides
Products & Service	SC is mainly engaged in sales of pesticides. Its products are mainly insecticide, herbicide, bactericide, plant growth regulator, etc. and they are mainly used in agriculture.

OPERATION FACILITIES

Business Address	No. 25 Honggou Road, Zhangdian Dist, Zibo City, Shandong Province(Office)
Tel	(86 533)2118996
Fax	(86 533)2111999
Post code	255075
Environment	Urban District
Ownership	Rented
Traffic Condition	Convenient

SALES INFORMATION

Region	Products		Customer Type	Number of Customers	Payment Terms	Region	Percentage
Domestic	Pesticides, etc.		Wholesalers and so on	Over 5	Prompt payment, credit payment, etc.	Shandong Province, etc.	10
International	Pesticides, etc.		Traders and so on	Over 5	L/C, T/T, etc.	Southeast Asia, Europe and America, etc.	90
OTHER INFORMATION		SC's products are sold at home and abroad, mainly in overseas market covering Southeast Asia, Europe and the United States and other countries and regions. With short history, subject is expanding its sales channels.

PURCHASE INFORMATION

Region	Main Products Purchased		Number of Suppliers	Payment Terms	Region	Percentage
Domestic	Pesticides, etc.		Over 5	Prompt payment, credit payment, etc.	Shandong Province, etc.	100
OTHER INFORMATION		SC's products are generally purchased in Shandong Province, etc. The suppliers are domestic pesticide manufacturers and traders.

MAJOR SUPPLIERS

-	Name	Legal Form	Country
1	SHANDONG DACHENG BIO-CHEMICAL CO.,LTD	Limited Liabilities Company	China

Name (English)	SHANDONG DACHENG BIO-CHEMICAL CO.,LTD
Country	China
Legal Form	Limited Liabilities Company

NOTE TO CREDIT RECORD

Note

SC's major supplier is its shareholder SHANDONG DACHENG BIO-CHEMICAL CO.,LTD. Due to the close relationship between the above two companies, credit record from the above supplier is highly unreliable and thus is not provided in the report. Information of subject's other suppliers is unavailable from various channels, either. Hence no payment record of subject can 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

EXPORT/IMPORT PERMIT

EXPORT/IMPORT PERMIT

Yes

EMPLOYEE

OTHER INFORMATION

SC's staff declined to disclose the number of employees. Hence its number of employees cannot be provided in this report.

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

FINANCIALS & ANALYSIS

Financial Note

Subject was established in Apr. 2017 with a short history, and its financial information is unavailable through all channels accessible. Subject's staff was contacted but refused to disclose its financial information. Hence no financial information of subject can be provided in the report.

INDUSTRY INFORMATION

INDUSTRY CODE

SIC (China)	5167,Wholesale of Pesticide 【Major】
ISIC	4669,Wholesale of other products, waste and scrap n.e.c.
NACE	46.75,Wholesale of other products, waste and scrap n.e.c.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 68.39
UK Pound	1	INR 91.44
Euro	1	INR 80.14
CNY	1	INR 10.65

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.