CHINA SAMPLE REPORT CO.,LTD.

Currency

The reason(s) for blank rating include:

Business (Subject has court record(s) within 2 years)

D&B Rating assesses enterprises'financial strength and credit condition and determines their credibility.

The Dun & Bradstreet Rating 5A- indicates:

Financial Strength of RMB 450,000,000 and greater (Based on Tangible Net Worth) and a Composite Credit Appraisal, which is Undetermined.

EMMA Score

EMMA Score Analysis

Subject's EMMA score is mainly impacted by the following risk drivers:

By evaluating all risk factors, the company is assigned with EMMA score of 2 indicating Low Risk

Industry Norm Grouping

Industry Group SIC	3645
Industry Group Description	Residential lighting fixtures
Industry Group EMMA Score Quartile Values	6 - Lower Quartile 7 - Median 8 - Upper Quartile

Company Risk Vs Industry Norm Chart

Distribution of EMMA Score in Huaxia D&B China's Database

Note: please refer to the report appendix for the principle and major factors of Huaxia D&B China EMMA Score.

Risk Assessment Matrix

Interpretation and Analysis of Risk Assessment Matrix

*Risk levels are listed in order of risk from low to high.

On Jan 09, 2020, Financial Principal Mr. Hua Wang (Tel: 1356786****) confirmed full financial statement, and confirmed the operational and historical data in this report. Other information was obtained from a third-party source and last investigation.

Generally in China, the information in our reports is collected and validated through telephone interview with subject, review of public websites of the business and acquisition of data that is publicly available by the Chinese Government.

The D&B PAYDEX® is a unique indicator of payment performance weighted by the monetary value of the payment experiences as reported to D&B by trade references. A detailed explanation of how to read and interpret PAYDEX values can be found in the Appendices section of this report.

PAYDEX of This Business

PAYDEX of This Industry

Trade Payment Experiences Summary

Note: Above Trade Payment Experiences Summary is derived by analysis trade payment experiences details within 24 months.

Trade Payment Experiences Details

(Amounts may be rounded to the nearest figure in prescribed ranges)

(Max. 100 records displayed)

Note: The above payment record reflects how accounts are paid in relation to the terms granted. Slow-30, for example, indicates a 30 day term where 30 additional days are taken. In some instance, payment beyond terms can be the result of disputes over merchandise, lost invoices, etc

Industry Payment Information

Supplier Reference

Subject has purchased copper from Nanjing Wanxiang Copper Industry for a couple years, with annual transaction of RMB 300,000 to RMB 400,000. Nanjing Wanxiang used to offer credit term to subject company. However, due to slow payment in the history, now it is settled by advance payment. The vendor appraised a fair comment on subject.

Customer Reference

Note: Subject's customer(s) were inquired to comment on the performance on above four dimensions with overall assessment of strong, good, fair and poor.

Shanghai Jiefei Engineering Co., Ltd indicated it has businesses with subject around 1 year, mainly souring its lighting products. The quality of subject's product is considered as fine with reasonable price and good service. Subject can deliver goods on time.

Trade Payment Industry Comparison

Litigation Records

As of Jan 09, 2020, HDBC has searched the China Court website, website of local court in the place where subject is located, major domestic courts websites as well as our internal China court database, and found below related court record(s) against the subject within 5 years.

Remark: The above mentioned channels are currently publicly available ones to search for the court records against China enterprises. However, due to lack of a centralized database in mainland China that covers all Chinese enterprises' litigation records, partial cases against subject might not be available.

Hearing Date	Sep 19, 2017
Court	hearing notice
Plaintiff(s)	Chengwu Zhao
Cause Action	Breach Of Contract
Case Details	Guangdong Foshan Shunde District people's court-(2017)Yue0606minchu No.11502.

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Judgment Date	Mar 16, 2016
Court	District Court Judgment
Plaintiff(s)	n/a
Case Details	Lianyungang Lianyun District people's court-(2016)Si0703zhi No.625
Judgment	To compensate the plaintiff with reimbursement of 1,788,517.00
Currency	RMB

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Media Records

News Clipping

Date	Oct 22, 2019

Publication

China Sample Report Co., Ltd. did not declare the added-value tax. (no declaration)

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Date	Nov 18, 2018

Publication

China Sample Report Co., Ltd. is on the list of top100 enterprises of Shanghai of 2018.

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Date	Oct 26, 2018

Publication

Internet-On the evening of October 25, China ACB Co.,Ltd. announced to sign the 'Strategic Cooperation Agreement' with China Sample Report Co., Ltd. With the principle of complementary advantages and resource sharing, they developed the strategic cooperation. The total amount would be between RMB 200 million and RMB 500 million.

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The company maintains relationship(s) with the following bank(s) in China:

Agricultural Bank of China,Jiading Branch

Registration

Registration Date	Feb 10, 2002
Registered At	Shanghai Administration for Industry & Commerce
United Social Credit Code Certificate No.	9112011661772XXXXW
License Expiry Date	Feb 09, 2032
Enterprise Registration Status	in good standing (in operation, open and registered)
Enterprise Management Status	open
Registered Capital	RMB 210,400,000
Paid-up Capital	RMB 210,400,000
Business Started	2009
Type of Business	A limited liability company (JV of foreign-invested enterprise(s) and domestic company(ies))
Registered Address	No.10, Yongjia Road, Wuniu Industry Zone, Jiading District, Shanghai
Legal Representative	Zhiyuan Wan
Business Scope	Manufacture of lighting appliances, lamps and accessories (except light source), electrical antenna, plastic products (except medical plastic products), procession of machine parts, self-operation and being an agent of import and export of variety of commodities and technologies (except those limited and prohibited by State).

Shareholder(s)

Shareholding Structure

Comment:

Chattel Mortgage Information

Performing Obligation Start Time	Jan 01, 2018
Performing Obligation Deadline	Dec 31, 2019
Chattel Mortgage Registration No.	Hu L1-0-2017-002
Chattel Mortgage Registration Authority	Shanghai Market Supervision Administration
Amount of Secured Creditor's Rights	RMB 20917600
Chattel Mortgage Type	Loan contract
Guarantee Scope	Main creditor's rights, liquidated damages, fees for realizing mortgage rights, interest, damages, other agreements in the contract
Collateral Name	Production equipment
Chattel Mortgage Registration Status	Valid

Abnormal Operating Enterprise List

History Changes

Name Changed

From:	Jiading Sample Electrical Appliances Co., Ltd.
To:	China Sample Report Co.,Ltd. (Current Name)
Change date:	Change date not available

Address Changed

From:	12, Bailang Road, Baosha Town Jiading District, Shanghai
To:	WuNiu Industrial Zone,Jiading Dist., Shanghai(Current Address)
Change date:	On(in) Nov 11, 2003

Registered Address Changed

From:	Rm 819, Dongyi International Mansion, No,488, North Shaoshan Rd., Yuhua Dist., Changsha
To:	No.10, Yongjia Road, Wuniu Industry Zone, Jiading District, Shanghai (Current Registered Address)
Change date:	On(in) Feb 22, 2016

Shareholders Changed

From:	Jiangmen Lamps & Electrical Apparatus Co.(60%), Sample Report Shareholder Co., Ltd.(40%)
To:	Jiangmen Lamps & Electrical Apparatus Co.(40%), Sample Report Shareholder Co., Ltd.(60%)
Change date:	Change date not available
To:	Sample Report Parent Company(60%), Sample Report Minor Shareholder Co., Ltd.1(20%), Sample Report Minor Shareholder Co., Ltd.2(10%), Si Li(10%) (Current Shareholders)
Change date:	On(in) May, 2008

Capital Changed

From:	RMB 800,000
To:	RMB 2,000,000
Change date:	On(in) Jul 23, 1998
To:	RMB 210,400,000 (Current Capital)
Change date:	On(in) May 08, 2008

Legal Representative Changed

From:	Jinsong Zeng
To:	Zhiyuan Wan (Current Legal Representative)
Change date:	On(in) Jul 18, 2007

Registration Number Changed

From:	12357
To:	310722100001676
Change date:	Change date not available

Integration of Three Licenses

From	Business Registration No. :310722100001676 Tax No. :Not obtained
To	Unified Social Credit Identifier :9112011661772XXXXW

History Summary

In 2009 , Jiangmen Lamps & Electrical Apparatus Co.(60%), Sample Report Shareholder Co., Ltd.(40%) jointly invested RMB 800,000 to establish subject. With some changes, currently,Sample Report Parent Company shares 60% of subject, Sample Report Minor Shareholder Co., Ltd.1 shares 20%, , Sample Report Minor Shareholder Co., Ltd.2 shares 10% and , Si Li shares 10% Subject's registered capital is RMB 210,400,000 at present.

Linkage Up

Parent Company

D-U-N-S:	42-133-5083
Company Name:	Sample Report Parent Company
Address:	No.5, Guangxi Road, Shinan District, Qingdao , Shandong , China
Tel:	0532-82861978
Engaged in:	Mainly engaged in production and wholesale rubber products, industrial machinery parts and so on.
Registered Capital:	RMB 500,000
Type of Business:	a Chinese foreign cooperative venture
Founded:	Apr 28, 2002
Shares held in subject:	60%

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Minor Shareholder(s) of Subject

Company Name:	Sample Report Minor Shareholder Co., Ltd.1
Address:	Macau
Shares held in subject:	20%

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Company Name:	Sample Report Minor Shareholder Co., Ltd.2
Address:	Hong Kong
Shares held in subject:	10%

Linkage Down

Subsidiary (subject owns more than 50%)

Company Name:	China Sample Report No.1 Company
Registered Capital:	100% owned by subject

Affiliate

D-U-N-S:	12-345-6789
Company Name:	Sample TW Co., Ltd.
Registered Capital:	30% owned by subject

Principal(s)

Hua ZHANG-Chairman

张 华

Started with Subject	2009
Activity Status	Yes
Area of Responsibility	Overall management
Related Working Experience	5 Year+

Zhiyuan WAN-General Manager/Legal Representative

万 智远

Related Working Experience

5 Year+

Affiliated Positions

Line of Business

Subject is a manufacturer.

Subject is mainly engaged in production and sales of light sources and lamp parts.

US SIC Code 3645 0000	Residential lighting fixtures
US SIC Code 3641 0000	Electric lamps
US SIC Code 5063 0400	Lighting fixtures

The operation is seasonal.

The peak season of subject is from 7 to 11.

The low season of subject is from 3 to 4.

Subject provides OEM Service.

Subject provides ODM Service.

Subject is entitled to independent import and export rights.

Brands

Brands Owned

JNP

Awards & Certifications

Awards & Certifications Name	ISO9001
Date Awarded	Apr 01, 2017
Date Expired	Mar 31, 2020

Patent

Patent refers to an exclusive right with a time limit for the invention or creation that applied to national approval authorities and approved qualified after legal examination. The three categories of patent are invention patent, utility model patent and design patent.

Subject owns 32 sets of manufacturing equipments made in China.

Subject owns2 production lines made in Macau.

Purchasing

Purchase Territory

Purchasing Terms

Purchasing Settlement Method

Major Suppliers

Selling Terms

Selling Settlement Method

Customer Type

Customer Total

100

Major Customers

China Customs Import and Export Data

Customs Rating:

general certification enterprise

On March 3, 2018, General Administration of Customs of the People's Republic of China published the announcement of the implementation of ' Customs Enterprise Credit Management Measures of the People's Republic of China'. From May 1, 2018, the customs recognize the certified enterprises, general credit enterprise and dishonest enterprises according to the enterprise integrity. The certified enterprises are divided into high certified enterprises and general certified enterprises.

Employees

Employee Size

The above are approximate staff numbers.

Historical Employee Size Records

Major Functional Departments

Operations Summary

Subject is mainly engaged in production and sales of light sources and lamp parts. It owns brand 'JNP'. Subject's major products are Halogen energy lamps and JDD series. The productivity of Halogen energy lamps is 1,200,000 ones per month. In 2016, actual output was 1,000,000 ones. The productivity of JDD series is 1,000,000 ones per month.

The materials subject demands for its production are 90% purchased domestically. 10% of the materials are imported, mainly from United States, Germany and other country/region. Nanjing Bulb Factory, Nanjing Wanxiang Copper Industry Co., Ltd. and ect. are its suppliers. Subject is entitled to I/E Rights.

80% of the products are sold domestically. Major customers include Shanghai Jiefei Engineering Co., Ltd., Ruspert International Trade Co., Ltd., Hong Kong and etc. 20% of the products are exported, such as Hong Kong, Singapore and other country/region.

Location

Principal Place of Business

Location Description	An industrial area
Land Area	3,000 sqm
Floor Space	3,000 sqm
Used as	Office and factory
Occupation Type	Rents

Other Place of Business

Type	REGISTERED ADDRESS
Address:	No.10, Yongjia Road, Wuniu Industry Zone, Jiading District, Shanghai

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Type	PLANT(S)
Address:	No.2 Wuniu Industry Zone,Jiading District, Shanghai

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Type	BRANCH(ES)
DUNS	65-450-2665
Name	Sample Report (China) Co., Ltd. Guangzhou Branch
Address:	123,Tangling Road, Yuexiu District,Guangzhou
Tel:	020-58791635

Province Background

Shanghai

Industry Highlights

Date	Jun 20, 2019
Source	Statistics Authorities
Detail	From January to December 2018, the output of electrical instruments was 221.126 million (with the year-on-year decrease of 2.6%). In December, the output of electrical instruments was 23.662 million (with the year-on-year increase of 2.6%). In 2018, national electrical instrument industry realized the operating revenue of RMB 4951.987 billion (with the year-on-year increase of 6.4%), and the total profit of RMB 283.682 billion (with the year-on-year increase of 5.5%). From all economic indicator, the overall situation was stable. It was predicted that the increase speed would be decreased in 2019. The whole electrician trade would realize the production and sales volume of the increase of 4%-5%. The profit would be realized of the year-on-year increase of 3%-5%.
Date	May 30, 2018
Source	Statistics Authorities
Detail	During January and December 2017, the output of electrical instruments was 223.784 million sets, down 5.6% accumulatively. In December, the output of electrical instruments was 22.958 million sets, up 19.0% year on year. In 2017, the electrical appliance industry realized main business income of RMB 5.76556 trillion, up 9.4% year on year, and total profits of RMB 344.07 billion, up 7.7% year on year. In 2017, the imports and exports were USD 160.4 billion, up 6.7% year on year; the imports were USD 52.91 billion, up 7.0% year on year; the exports were USD 107.49 billion, up 6.6% year on year. In 2017, the major economic indicators of the electrical appliance industry continued to show a restorative growth, and a stable development trend.

Finance

Please note that any financial information (such as financial statements) included in this report was obtained with the company's consent or from the stock exchange. If no financial information is provided in this report, it is because the company did not provide its consent to have such information disclosed. Pursuant to the Interim Regulations on the Public Disclosure of Enterprise Information, issued by the State Council and effective from 1 October 2014, companies will no longer be required to submit their financial statements to the Administration of Industry and Commerce (AIC). Instead, only limited financial figures of the company will be reported to the AIC, and such figures will be made available in reports only if the company itself has consented to the disclosure of such financial figures. These new requirements affect all company financial information for the 2013 financial year and onward, and as such, financial statements should no longer be available in any reports for the 2013 financial year and onward,unless the company itself has provided such statements and consented to the disclosure of such statements, or the company's financial statement has been published on a stock exchange.

The 2018 balance sheet and profit and loss statement were audited.

The 2018 financial statements were obtained from outside sources.

Financial Highlights

Historical Performance: Balance Sheet

Balance Sheet

Historical Performance: Profit & Loss

Profit & Loss Statement

Key Financial Ratios

Liquidity Ratios

Profitability Ratios

Financial Comments

Business Performance: According to subject's financial statements of 2018, its sales realized RMB 1,339,552 thousand, up 25.47% over the previous year, indicating its decent sales growth. During the same year, subject's net profit booked RMB 95,504 thousand, up 16.27% over the previous year. Its net profit margin was 7.13%, lower than the year-earlier level, which indicated its profitability should be improved.

Solvency: By the end of 2018, Subject's current ratio and quick ratio posted 1.93 and 1.29 respectively, showing its strong short-term solvency capacity. Its working capital increased to RMB 553,808 thousand. At the end of 2018, subject's debt ratio stood at 0.33, which indicated its capital structure was reasonable.

Cash Flow: By the end of 2018, subject's cash and bank deposit was RMB 497,074 thousand, increasing over the previous year. At the end of 2018, subject's account receivable booked RMB 87,653 thousand, and its DSO recorded 23 day(s), extending 4 day(s) compared with the year earlier, indicating its control on account receivable weakened. Its account payable was RMB 161,065 thousand, with a payment period of 51 day(s).

Overall financial status of subject is considered as fair.

HDBC EMMA Score

D&B EMMA Score (Emerging Market Mediation Alert Score) is a risk assessment model developed for emerging market countries. It is a score developed by data profiling approach and statistical modeling, which predicts the possibility of a business in perilous status of instability or unreliability, such as poor financials, delay payment, stale inventory, abnormal operational status, etc. The EMMA Score provides you with a quick assessment of a business' risk standing, and when used together with other information, allows you to make better risk decisions.

The EMMA Score is based on a scale of 1 to 10, where 1 represents a lower risk and 10 a higher risk.

EMMA Score for China is initially rolled out in May 2009, derived from the sample analysis of millions of company records. When using the Score to make individual applicant decisions, a customized version of this table based on an analysis of the Score against your customer account portfolio is recommended. It does not necessarily mean doing business with a company, which is assigned with higher Risk Score, will result in increased risk.

Considering the particularity of Chinese business environment and in order to make EMMA Score analyze and reflect risk factors of Chinese enterprises more appropriately, HDBC conducted an optimization and adjustment toward EMMA Score in the first half of 2012, combined PAYDEX® to appraisal model as an important risk evaluating dimension and will try harder to deeply reflect the internal factors of enterprise risk. The optimized EMMA Score makes the scores more scientifically and effectively reflect the risk characteristics of current China as an emerging market and more objectively and deeply reflect risk level of Chinese enterprises.

EMMA Score for China is calibrated on regular basis following D&B Global Modeling Methodology that captures business environmental change in China caused by macro economy shift and particular systematic events.

HDBC EMMA Score Commentary

The Key Drivers of the EMMA Score include the following:

Business Information

Geographical Information

Public Record

Payment Information

EMMA Score Application

Sample Data Analysis of Risk Assessment Matrix Database

Risk Matrix Sample Distribution

Possibility of High Risk Enterprise

Interpretation and Analysis of Risk Assessment Matrix

*Risk levels are listed in order of risk from low to high.

Risk Assessment Matrix is the tool for investigating the insight of subject combined with EMMA Score and PAYDEX®. EMMA Score can indicate the risk level of subject. With the help of PAYDEX®, one can also further analysis subject's risk and find out the internal factors causing risks based on the payment records of subject. In summary, the assessment matrix can make further insightful analysis towards the enterprises with similar EMMA Scores.

When using EMMA Score and Risk Assessment Matrix, the combination of other information, such as internal assessment policy of enterprise, commercial information provided by HDBC, and feedback from the people who directly contacts with subject, etc., is recommended. With these information, it will allow you to be more convenient to make risk decisions.

D&B Rating

D&B Rating Interpretation Tables

Explanation of PAYDEX

A score of 80 denotes that payments reported to D&B have generally been made within terms. Scores over 80 indicate that payments reported to D&B have been made earlier than terms. The chart below outlines the specific 0-100 score and what it means.

Customs Rating

On March 3, 2018, General Administration of Customs of the People's Republic of China published the announcement of the implementation of ‘Customs Enterprise Credit Management Measures of the People's Republic of China’. From May 1, 2018, the customs recognize the certified enterprises, general credit enterprise and dishonest enterprises according to the enterprise integrity. The certified enterprises are divided into high certified enterprises and general certified enterprises.

Please refer to the customs chain link: No. 237 order of General Administration of Customs (Customs Enterprise Credit Management Measures of the People's Republic of China)

http://www.customs.gov.cn/customs/302249/302266/302267/1471687/index.html

Customer Service

Customer Service Contact Information

Website:	www.huaxiadnb.com
E-mail:	enquiry@huaxiadnb.com
Telephone:	400-820-3536 (Shanghai) 400-810-3531 (Beijing) 800-830-9032 (Guangzhou)
Our ref:	202001095009302028
Your ref:	980000

Remarks

Whilst Huaxia D&B China attempts to ensure that the information provided is accurate and complete by reason of the immense quantity of detailed matter dealt within compiling the information and the fact that some of the data are supplied from sources not controlled by Huaxia D&B China which cannot always be verified, including information provided direct from the subject of enquiry as well as the possibility of negligence and mistake, HDBC does not guarantee the correctness or the effective delivery of the information and will not be held responsible for any errors or omissions therein.

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