Creditsafe International Full Report

REGISTERED NAME & COMPANY SUMMARY

Example Co., Ltd.

HI - TECH INDUSTRIAL PARK

EXAMPLE PROVINCE, 00000 PR CHINA

TEL: 00 (0) 000-0000000

FAX: 00 (0) 000-0000000

EXECUTIVE SUMMARY

INCORPORATION DATE : JUL. 5, 2005

REGISTRATION NO. : 000000000000000

REGISTERED LEGAL FORM : EXAMPLE-owned enterprise

CHIEF EXECUTIVE : MR. P... X...

STAFF STRENGTH : 10,000

REGISTERED CAPITAL : USD 846,550,000

BUSINESS LINE : MANUFACTURING and trading

TURNOVER : CNY 11,615,816,000 (AS OF DEC. 31, 2008)

EQUITIES : cny 7,679,152,000 (AS OF DEC. 31, 2008)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USd 30,000,000

MARKET CONDITION : competitive

FINANCIAL CONDITION : FAIRLY stable

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : well-known

EXCHANGE RATE : CNY 6.50= USD 1 AS OF 2011-6-8

WEB SITE

http://www.example.com/

The design is professional and the content is well organized. At present the web is in both Chinese and English versions.

E-mail:info@ example.com & sales@ example.com

CREDIT RECOMENDATION

Current Credit Scoring: B

Current Credit Limit: 30,000,000 USD

Credit Scoring / Limit additional comments:

Scoring Explanation
A Very Good Credit Worthiness (Lowest Risk)
B Good Credit Worthiness (Low Risk)
C Satisfactory Credit Worthiness (Moderate Risk)
D Not credit worthy
E Ratiing suspended

DIRECTORS/MANAGEMENT

Management

Legal Representative and Chairman:

Mr. P... X... (...), ID#: 000000000000000000, 35 years old with MBA degree, is currently responsible for the overall management of Example. He founded the company in July 2005. Prior to founding the company, Mr. P... founded S... L... in March 1997 and was its chief executive officer until February 2006. S... L... is a leading manufacturer of personal protective equipment in Asia. Mr. P... graduated from Jiangxi Foreign Trade School in 1993 with a diploma in international business and from Beijing University Guanghua School of Management with an executive MBA degree in 2002. (The above information is from http://www.example.com .)

Working Experience(s):

From 1997 to 2006 Worked in S... L... as chief executive officer.

(This information is from http://www.example.com )

From 2005 to present Working in Example as legal representative and chairman.

Also working in J... L... P... S... Technology Co., Ltd. as legal representative and chairman

NEGATIVE INFORMATION

No negative information found.

SHARE & SHARE CAPITAL INFORMATION

REGISTERED CAPITAL : USD 846,550,000

OWNERSHIP/MANAGEMENT

MAIN SHAREHOLDERS:

Name % of Shareholding

L... S... Co., Ltd. (Cayman Islands) 100

PAYMENT INFORMATION

PAYMENT

Overall payment appraisal :

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet determined

The appraisal serves as a reference to reveal Example's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current enquiry with Example's suppliers), our delinquent payment records and our debt collection record concerning Example.

Trade payment experience: Example 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 Example was placed to us for collection within the last 6 years.

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

GROUP STRUCTURE & AFFILIATED COMPANIES

RELATED COMPANIES

J... L... P... S... Technology Co., Ltd.

Legal representative: P... X...

Registration No.: 000000000000000

Incorporation date: July 12, 2007

According to Example’s website:

L... S... USA, Inc.

L... S...美国分公司

Add.: 1290 Example Street, Sunnyvale, CA 94085 USA

Tel: +0-000-000-0000

Fax: +0-000 000 0000

L... S... Shanghai Office:

L... S...r上海办公室

Add.: Example Road, Shanghai PRC 000000

Tel: +00-00-0000-0000

Fax: +00-00-0000-0000

FINANCIAL INFORMATION

FINANCIAL HIGHLIGHTS

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2008 / As of Dec. 31, 2007
Cash & bank / 2,147,325 / 1,489,049
Inventory / 4,813,216 / 2,556,583
Accounts receivable / 668,484 / 28,025
Advances to suppliers / 4,289,992 / 1,338,713
Other receivables / 403,332 / 329,023
Other current assets / 7,248 / 13,880
------/ ------
Current assets / 12,329,597 / 5,755,273
Fixed assets / 5,520,151 / 2,330,690
Long term investment / 1,754,082 / 0
Intangible and other assets / 643,511 / 565,522
Other assets / 324,682 / 0
------/ ------
Total assets / 20,572,023 / 8,651,485
======/ ======
Short loans / 4,372,958 / 1,782,641
Accounts payable / 967,970 / 171,486
Advances from clients / 1,752,464 / 1,041,634
Other payable / 842,393 / 447,084
Other current liabilities / 506,494 / 283,802
------/ ------
Current liabilities / 8,442,279 / 3,726,647
Long-term loans / 844,249 / 183,527
Other long-term liabilities / 3,606,343 / 493,452
------/ ------
Total liabilities / 12,892,871 / 4,403,626
Equities / 7,679,152 / 4,247,859
------/ ------
Total liabilities & equities / 20,572,023 / 8,651,485
======/ ======

Income Statement

Unit: CNY’000

As of Dec. 31, 2008 / As of Dec. 31, 2007
Turnover / 11,615,816 / 3,959,279
Cost of goods sold / 8,862,919 / 2,661,512
Taxes and additional of main operation / 0 / 0
Sales expense / 26,756 / 6,346
Management expense / 281,350 / 156,864
Finance expense / 86,928 / 47,811
Non-operating income / 133,957 / 49,459
Non-operating expense / 1,589,018 / 62
Profit before tax / 902,802 / 1,136,142
Less: profit tax / 126,620 / 0
Profits / 776,182 / 1,136,142

Note: The company has not lodged the latest annual returns in the local registry, hence no up-to-date detailed financial information could be provided.

Important Ratios

======

As of Dec. 31, 2008 / As of Dec. 31, 2007
*Current ratio / 1.46 / 1.54
*Quick ratio / 0.89 / 0.86
*Liabilities to assets / 0.63 / 0.51
*Net profit margin (%) / 6.68 / 28.70
*Return on total assets (%) / 3.77 / 13.13
*Inventory /Turnover ×365 / 152 days / 236 days
*Accounts receivable/Turnover ×365 / 21 days / 3 days
*Turnover/Total assets / 0.56 / 0.46
* Cost of goods sold/Turnover / 0.76 / 0.67

FOREIGN EXCHANGE RATES

EXCHANGE RATE : CNY 6.50= USD 1 AS OF 2011-6-8

ADDITIONAL INFORMATION

HISTORY

Note: Example’s complete name should be the heading one.

Example was registered as a Chinese foreign equity joint venture enterprise at local Administration for industry & commerce (A.. - the official body of issuing and renewing business license) on July 5, 2005 and has been under presentlegal formsince 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.

Example’s registered business scope includes manufacturing, selling and storage of purified silicon, monocrystalling, multicrystalline wafers, multicrystalline solar cells, solar wafer products, solar pipes, solar water heaters, water heater system. (Excluding the items specially regulated, limited and prohibited by the state)

Example is mainly engaged in manufacturing and selling monocrystalling, multicrystalline wafers, and multicrystalline solar cells. (该公司目前实际主要从事生产销售单晶及多晶硅棒以及多晶硅片、太阳能电池等。)

Mr. P... X... has been legal representative and chairman of Example since 2005.

Exampleis known to haveapprox. 10,000 employees at present.

Example is currently operating at the above stated address, and this address houses its operating office and factory in the hi-tech industrial park of Xinyu. The accountant refused to release detailed information about the premise.

KEY EVENTS/RECENT DEVELOPMENT

Example has obtained the BSI ISO0000:0000 certificate, and was awarded as “J... Excellent Foreign Trading Company Of 2006”, “The Most Potential Company in Chinese New Material Industry”, etc.

Changes of Example’s registered information:

Date / Item / Before changed / After changed
2006/7 / Registered legal form / Chinese foreign equity joint venture enterprise / Wholly foreign-owned enterprise
Shareholders / S... L... Industry Co., Ltd. 27.59%; L... I...l Limited (Hong Kong) 72.41% / L... S... Co., Ltd. (Cayman Islands) 100%
2006/8 / Registered capital / USD 29,000,000 / USD 35,900,000
2006/10 / Registered capital / USD 35,900,000 / USD 83,600,000
2006/12 / Registered capital / USD 83,600,000 / USD 103,600,000
2007/3 / Registered capital / USD 103,600,000 / USD 110,950,000
2007/6 / Registered capital / USD 110,950,000 / USD 158,675,000
2007/6 / Registered capital / USD 158,675,000 / USD 248,650,000
2007/7 / Registered capital / USD 248,650,000 / USD 298,650,000
2007/8 / Registered capital / USD 298,650,000 / USD 348,650,000
2007/11 / Registered capital / USD 348,650,000 / USD 356,540,000
2008/3 / Registered capital / USD 356,540,000 / USD 454,540,000
2008/9 / Registered capital / USD 454,540,000 / USD 529,880,000
2008/12 / Registered capital / USD 529,880,000 / USD 749,850,000
2009/12 / Registered capital / USD 749,850,000 / USD 838,850,000
2010/1 / Registered capital / USD 838,850,000 / USD 846,550,000

Example has obtained the BSI ISO9001:2000 certificate, and was awarded as “J... Excellent Foreign Trading Company Of 2006”, “The Most Potential Company in Chinese New Material Industry”, etc.

Changes of Example’s registered information:

Date / Item / Before changed / After changed
2006/7 / Registered legal form / Chinese foreign equity joint venture enterprise / Wholly foreign-owned enterprise
Shareholders / S... L... Industry Co., Ltd.. 27.59%; L... Industrial Limited (Hong Kong). 72.41% / L... S... Co., Ltd. (Cayman Islands) 100%
2006/8 / Registered capital / USD 29,000,000 / USD 35,900,000
2006/10 / Registered capital / USD 35,900,000 / USD 83,600,000
2006/12 / Registered capital / USD 83,600,000 / USD 103,600,000
2007/3 / Registered capital / USD 103,600,000 / USD 110,950,000
2007/6 / Registered capital / USD 110,950,000 / USD 158,675,000
2007/6 / Registered capital / USD 158,675,000 / USD 248,650,000
2007/7 / Registered capital / USD 248,650,000 / USD 298,650,000
2007/8 / Registered capital / USD 298,650,000 / USD 348,650,000
2007/11 / Registered capital / USD 348,650,000 / USD 356,540,000
2008/3 / Registered capital / USD 356,540,000 / USD 454,540,000
2008/9 / Registered capital / USD 454,540,000 / USD 529,880,000
2008/12 / Registered capital / USD 529,880,000 / USD 749,850,000
2009/12 / Registered capital / USD 749,850,000 / USD 838,850,000
2010/1 / Registered capital / USD 838,850,000 / USD 846,550,000

BUSINESS OPERATIONS

Example’s products mainly include: lngots, multi-crystalline wafers, mono-crystalline wafers.

The brief introduction of Example’s manufacturing capacity:

As of March 31, 2008, Example’s manufacturing capacity was 580 MW.

Example plans to expand manufacturing capacity to 1.1GW by the end of 2008

Example further plans to expand manufacturing capacity to 2 GW by the end of 2009.

(The above information is from http://www.example.com .)

Example sources its materials 90% from domestic market, and 10% from the overseas market. Example sells 80% of its products to the overseas market, mainly Europe, America, and 20% to domestic market.

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

BANKING

Example refused to release its bank information.

NOTES & COMMENTS