Qingdao Inter-Credit Services Pte Co., Ltd.

Room 2305 Parkson International Business Center 44 -60, Qingdao, PR China 266001
TEL: 86 (0)532 82022907 82022177 FAX:86 (0)532 82022810 E-MAIL: service@inter-credit.net

Date of Report : August 30, 2010

Client’s ref. :
Our ref. : 62685-262

F UJIAN F ENZHONG M EDIA CO., LTD.

福建分众传媒有限公司
22/F WUYI CENTER, NO. 33 EAST STREET, GULOU DISTRICT, FUZHOU,
FUJIAN PROVINCE, 350001 PR CHINA
福建省福州市鼓楼区东街 33 号武夷中心第 22 层
TEL: 86 (0) 591-28377977 FAX: 86 (0) 591-28377988

EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 31, 2002
REGISTRATION NO. : 350100100032100
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR . CHENG ZHE NG (CHAIRMAN)
STAFF STRENGTH : 300
REGISTERED CAPITAL : CNY 20,00 0,000
BUSINESS LINE : ISSUING ADVERTISEMENT
TURNOVER : CNY 2,300,000 (AS OF DEC. 31, 2008)
EQUITIES : CNY 13,920,000 (AS OF DEC. 31, 2008)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 20,000
MARKET CONDITION : FAIR
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.83= USD1 AS OF 2010-8 -30

CREDIT RATING : CA4 (see below explanatory notes)

RATING CREDIT RISK ASSESSMENT PROPOSED CREDIT LIM IT
KEY (in concerned business field)
CA1 Minimal Credit can proceed with favorable terms Large amount
CA2 Low Credit can proceed promptly Fairly large amount
CA3 Average Credit can proceed normally Moderate amo unt
CA4 Above average Credit sho uld proceed with monitor Small amount – period ical review
CA5 Fairly High Credit sho uld be extended under guarantee C.O.D. To small amount
CA6 High Credit is not recommended C.O.D.
NR Assessment not cond ucted Insufficient data available No recommendation

This rating 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 o f the major sectio f this report. The assessed factors and their relative weights (as indicated throu h %)
in our cred it analysis are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

In case of unlimited co mpanies, newly established companies, or lack of financial data, more weight is given to ‘Ownership background’ and
‘Payment record’ in o ur analysis.

Adopted abbreviations :
ANS - amount not stated NS - not stated SC - subject company (the co mpany inquired b y you)
NA - not available CNY - China Yuan Ren M in Bi

NO TIC E: In te r -Cre d it do es n ot wa rran t th e ac cu rac y o r c o mp leten ess o f th is repo rt o r any o f the in fo rma tio n con ta ine d h e re in . In te r -Cre d it is not lia b le fo r a ny loss ,
d a mag e o r in ju ry caus ed b y n eg lig en ce o r o th e r ac t o r o f Inte r -Cred it in p ro cu ring , co lle c tin g , p rep a ring o r co mmu n ic g any su ch in fo rma tio n . Re lia nc e on any
in fo rma tion c onta ined h e re in sh a ll be so le ly at the us e r’s ris ks and sh a ll cons titute a wa iv e r o f an y c la im a ga inst and a re leas e o f Inte r -Cre d it fro m any lia b ility wh atso eve r.
T h is repo rt is fu rn is hed in stric t con fid enc e fo r you r e xc lus ive use fo r le g itima te bus iness pu rposes and fo r no o th e r pu rpose . Th is re po rt mus t no t be co mmu n ic ated to the
p e rson o r firm re p o rte d on o r to any othe r pa rty . In a e pting th is re po rt yo u h e re by ag ree to be resp ons ib le fo r an d to inde mn ify Inte r -Cred it a ga inst any an d a ll d a mag es and
lo ss a ris ing fro m th e re po rt and /o r b re ac h o f a ny o f t e abo ve cond itions . An y re p rodu c tion , rep lic a tion o r o th e r use o f th is re po rt withou t th e e xp ress ed written cons ent of
In te r -Cre d it is p ro h ib ited .
 F UJIAN F ENZHONG M EDIA CO., LTD.

HISTORY

SC was registered as a limited liabilities company at local Administration for Industry &
Commerce (AIC - The official body of issuing and renewing business license) on May 31, 2002.

Company Status: Limited liabilities co .

This form of business in PR China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics
of this form of co. are as follows:
Upon the establishment of the co., an investment certificate is issued to the each of shareholders.
The board of directors is comprised of three to thirteen members.
The minimum registered capital for a co. is CNY 30,000.
Shareholders may take their capital contributions in cash or by means of tangible assets or
intangible assets such as industrial property and non-patented technology.
Cash contributed by all shareholders must account for at least 30% of the registered capital.
Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered capital of the co

SC’s registered business scope includes designing, making, issuing domestic various
advertisement; marketing planning; showing decorate; developing new media; making and
issuing TV play, vitas-tvc, tv variety show and flash. (该公司的法定经营范围包括：承办设
计、制作、代理、发布国内各类广告；营销企划；展示会布置；新媒体开发；电视剧、电
视专题、电视综艺、动画故事节目制作、发行。)

SC is mainly engaged in making and issuing advertisement. (该公司目前实际主要从事制作发

布广告。)

Mr. Cheng Zheng (程征) has been chairman of SC since 2002.

SC is known to have approx. 300 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office
in the commercial zone of Fuzhou. Our checks reveal that SC rents the total premise about 500
square meters.

NO TIC E: In te r -Cre d it do es n ot wa rran t th e ac cu rac y o r c o mp leten ess o f th is repo rt o r any o f the in fo rma tio n con ta ine d h e re in . In te r -Cre d it is not lia b le fo r a ny loss , 2
d a mag e o r in ju ry caus ed b y n eg lig en ce o r o th e r ac t o r o f Inte r -Cred it in p ro cu ring , co lle c tin g , p rep a ring o r co mmu n ica ting any su ch in fo rma tio n . Re lia nc e on any
in fo rma tion c onta ined h e re in sh a ll be so le ly at the us e r’s ris ks and sh a ll cons titute a wa iv e r o f an y c la im a ga inst and a re leas e o f Inte r -Cre d it fro m any lia b ility wh atso eve r.
T h is repo rt is fu rn is hed in stric t con fid enc e fo r you r e xc lus ive use fo r le g itima te bus iness pu rposes and fo r no o th e r pu rpose . Th is re po rt mus t no t be co mmu n ic ated to the
p e rson o r firm re p o rte d on o r to any othe r pa rty . In a e pting th is re po rt yo u h e re by ag ree to be resp ons ib le fo r an d to inde mn ify Inte r -Cred it a ga inst any an d a ll d a mag es and
lo ss a ris ing fro m th e re po rt and /o r b re ac h o f a ny o f t e abo ve cond itions . An y re p rodu c tion , rep lic a tion o r o th e r use o f th is re po rt withou t th e e xp ress ed written cons ent of
In te r -Cre d it is p ro h ib ited .
 F UJIAN F ENZHONG M EDIA CO., LTD.

WEB SITE

SC is not known to host website of its own at present.

KEY EVENTS/RECENT DEVELOPMENT

*To what extent is your company affected by the current edit Crisis?

SC’s management declined to make any comments.

Changes of SC’s registered information:

Date Item Before changed After changed
Nov. 2003 Company Fuzhou Mandefu Food Co., Ltd. Fuzhou Fenzhong
name 福州曼德夫食品有限公司 Media Co., Ltd. 福州
分众传媒有限公司
Registered CNY 400,000 CNY 1,000,000
capital
Sep. 2005 Registered CNY 1,000,000 CNY 2,000,000
capital
Dec. 2007 Registered CNY 2,000,000 CNY 20,000,000
capital
Jan. 2008 Shareholders Bian Chunlan 卞春兰 20% Bian Chunlan 卞春兰
Cheng Zheng 程征 80% 20%; Cheng Zheng 程
征 77%; Wu Xiujuan
吴秀娟 3%
Jul. 2008 Shareholders Bian Chunlan 卞春兰 20%; Present ones
Cheng Zheng 程征 77%;
Wu Xiujuan 吴秀娟 3%
Aug. 2008 Address 20/F Block A, Hukaifugui, Present one
Gulou District, Fuzhou 福州市
鼓楼区东大路 36 号花开富贵
A 座 20 层
Unknown Registered 3501002029533 Present one
number

NO TIC E: In te r -Cre d it do es n ot wa rran t th e ac cu rac y o r c o mp leten ess o f th is repo rt o r any o f the in fo rma tio n con ta ine d h e re in . In te r -Cre d it is not lia b le fo r a ny loss , 3
d a mag e o r in ju ry caus ed b y n eg lig en ce o r o th e r ac t o r o f Inte r -Cred it in p ro cu ring , co lle c tin g , p rep a ring o r co mmu n ica ting any su ch in fo rma tio n . Re lia nc e on any
in fo rma tion c onta ined h e re in sh a ll be so le ly at the us e r’s ris ks and sh a ll cons titute a wa iv e r o f an y c la im a ga inst and a re leas e o f Inte r -Cre d it fro m any lia b ility wh atso eve r.
T h is repo rt is fu rn is hed in stric t con fid enc e fo r you r e xc lus ive use fo r le g itima te bus iness pu rposes and fo r no o th e r pu rpose . Th is re po rt mus t no t be co mmu n ic ated to the
p e rson o r firm re p o rte d on o r to any othe r pa rty . In a e pting th is re po rt yo u h e re by ag ree to be resp ons ib le fo r an d to inde mn ify Inte r -Cred it a ga inst any an d a ll d a mag es and
lo ss a ris ing fro m th e re po rt and /o r b re ac h o f a ny o f t e abo ve cond itions . An y re p rodu c tion , rep lic a tion o r o th e r use o f th is re po rt withou t th e e xp ress ed written cons ent of
In te r -Cre d it is p ro h ib ited .
 F UJIAN F ENZHONG M EDIA CO., LTD.

OWNERSHIP/MANAGEMENT

MAIN SHAREHOLDERS:

Name % of Shareholding

Bian Chunlan 卞春兰 20

Cheng Zheng 程征 ID: 350103710311005 80

MANAGEMENT

l Chairman and General Manager:

Mr. Cheng Zheng (程征), in his 30’s with university education. He is currently responsible for the
overall management of SC.

Working Experience(s):

From 2002 to present Working in SC as chairman and general manager.

BUSINESS OPERATIONS

SC is mainly engaged in making and issuing advertisement. ( 该公司目前实际主要从事制作发

布广告。)

SC’s products mainly include: advertisement.

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

NO TIC E: In te r -Cre d it do es n ot wa rran t th e ac cu rac y o r c o mp leten ess o f th is repo rt o r any o f the in fo rma tio n con ta ine d h e re in . In te r -Cre d it is not lia b le fo r a ny loss , 4
d a mag e o r in ju ry caus ed b y n eg lig en ce o r o th e r ac t o r o f Inte r -Cred it in p ro cu ring , co lle c tin g , p rep a ring o r co mmu n ica ting any su ch in fo rma tio n . Re lia nc e on any
in fo rma tion c onta ined h e re in sh a ll be so le ly at the us e r’s ris ks and sh a ll cons titute a wa iv e r o f an y c la im a ga inst and a re leas e o f Inte r -Cre d it fro m any lia b ility wh atso eve r.
T h is repo rt is fu rn is hed in stric t con fid enc e fo r you r e xc lus ive use fo r le g itima te bus iness pu rposes and fo r no o th e r pu rpose . Th is re po rt mus t no t be co mmu n ic ated to the
p e rson o r firm re p o rte d on o r to any othe r pa rty . In a e pting th is re po rt yo u h e re by ag ree to be resp ons ib le fo r an d to inde mn ify Inte r -Cred it a ga inst any an d a ll d a mag es and
lo ss a ris ing fro m th e re po rt and /o r b re ac h o f a ny o f t e abo ve cond itions . An y re p rodu c tion , rep lic a tion o r o th e r use o f th is re po rt withou t th e e xp ress ed written cons ent of
In te r -Cre d it is p ro h ib ited .
 F UJIAN F ENZHONG M EDIA CO., LTD.

RELATED COMPANIES

SC is not known to have any subsidiary at present.

PAYMENT

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 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

Agricultural Bank of China Fuzhou Jin ’an Sub-branch

中国农业银行福州晋安支行
AC#：13-135101040015681

Relationship: Normal.

NO TIC E: In te r -Cre d it do es n ot wa rran t th e ac cu rac y o r c o mp leten ess o f th is repo rt o r any o f the in fo rma tio n con ta ine d h e re in . In te r -Cre d it is not lia b le fo r a ny loss , 5
d a mag e o r in ju ry caus ed b y n eg lig en ce o r o th e r ac t o r o f Inte r -Cred it in p ro cu ring , co lle c tin g , p rep a ring o r co mmu n ica ting any su ch in fo rma tio n . Re lia nc e on any
in fo rma tion c onta ined h e re in sh a ll be so le ly at the us e r’s ris ks and sh a ll cons titute a wa iv e r o f an y c la im a ga inst and a re leas e o f Inte r -Cre d it fro m any lia b ility wh atso eve r.
T h is repo rt is fu rn is hed in stric t con fid enc e fo r you r e xc lus ive use fo r le g itima te bus iness pu rposes and fo r no o th e r pu rpose . Th is re po rt mus t no t be co mmu n ic ated to the
p e rson o r firm re p o rte d on o r to any othe r pa rty . In a e pting th is re po rt yo u h e re by ag ree to be resp ons ib le fo r an d to inde mn ify Inte r -Cred it a ga inst any an d a ll d a mag es and
lo ss a ris ing fro m th e re po rt and /o r b re ac h o f a ny o f t e abo ve cond itions . An y re p rodu c tion , rep lic a tion o r o th e r use o f th is re po rt withou t th e e xp ress ed written cons ent of
In te r -Cre d it is p ro h ib ited .
 F UJIAN F ENZHONG M EDIA CO., LTD.

FINANCIAL HIGHLIGHTS

Balance Sheet
Unit: CNY ’000
As of Dec. 31, 200 7 As of Dec. 31, 200 8
Cash & bank 2,960 5,050
Inventory 0 0
Accounts receivable 220 290
Advances to suppliers -60 -60
Other receivables 12,440 13,180
Other current assets 230 190
--------------- ---------------
Current assets 15,790 18,650
Fixed assets net value 7,160 7,050
Projects under construction 0 0
Long term investment 0 0
Other assets 20 20
--------------- ---------------
Total assets 22,970 25,720
============ ============
Short loans 0 3,000
Accounts payable 140 140
Advances from clients 90 80
Taxes payable 10 20
Salaries payable 40 50
Other payable 8,490 8,480
Other current liabilities 20 30
------------------- -------------------
Current liabilities 8,790 11,800
Long term liabilities 0 0
------------------- -------------------
Total liabilities 8,790 11,800
Equities 14,180 13,920
------------------- -------------------
Total liabilities & equ ities 22,970 25,720
=========== ===========

NO TIC E: In te r -Cre d it do es n ot wa rran t th e ac cu rac y o r c o mp leten ess o f th is repo rt o r any o f the in fo rma tio n con ta ine d h e re in . In te r -Cre d it is not lia b le fo r a ny loss , 6
d a mag e o r in ju ry caus ed b y n eg lig en ce o r o th e r ac t o r o f Inte r -Cred it in p ro cu ring , co lle c tin g , p rep a ring o r co mmu n ica ting any su ch in fo rma tio n . Re lia nc e on any
in fo rma tion c onta ined h e re in sh a ll be so le ly at the us e r’s ris ks and sh a ll cons titute a wa iv e r o f an y c la im a ga inst and a re leas e o f Inte r -Cre d it fro m any lia b ility wh atso eve r.
T h is repo rt is fu rn is hed in stric t con fid enc e fo r you r e xc lus ive use fo r le g itima te bus iness pu rposes and fo r no o th e r pu rpose . Th is re po rt mus t no t be co mmu n ic ated to the
p e rson o r firm re p o rte d on o r to any othe r pa rty . In a e pting th is re po rt yo u h e re by ag ree to be resp ons ib le fo r an d to inde mn ify Inte r -Cred it a ga inst any an d a ll d a mag es and
lo ss a ris ing fro m th e re po rt and /o r b re ac h o f a ny o f t e abo ve cond itions . An y re p rodu c tion , rep lic a tion o r o th e r use o f th is re po rt withou t th e e xp ress ed written cons ent of
In te r -Cre d it is p ro h ib ited .
 F UJIAN F ENZHONG M EDIA CO., LTD.

Income Statement
Unit: CNY ’000
As of Dec. 31, 200 8
Turnover 2,300
Cost of goods sold 230
Sales expense 1,310
Management expense 6,180
Finance expense -10
Profit before tax -6,080
Less: profit tax 0
Profits -6,080

Important Ratios
=============
200 7 200 8
*Current ratio 1.80 1.58
*Quick ratio 1.80 1.58
*Liabilities to assets 0.38 0.46
*Net profit margin (%) / -264.35
*Return on total assets (%) / -23.64
*Inventory /Turnover ×365 / 0
*Accounts receivable/Turnover ×365 / 46days
*Turnover/Total assets / 0.09
* Cost of goods sold/Turnover / 0.10

FINANCIAL COMMENTS

P ROF ITABILITY: P OOR

l The turnover of SC appears fair.
l SC’s net profit margin is poor.
l SC’s return on total assets is poor.
l SC’s cost of goods sold is low, comparing with its turnover.

LIQUIDITY: AVERAGE
l The current ratio of SC is maintained in a normal level.
l SC’s quick ratio is maintained in a normal level.
l The accounts receivable of SC is average.
l SC has no inventory.
l The short loans of SC are average in 2008.
l SC’s turnover is in a fair level, comparing with the size of its total assets.

NO TIC E: In te r -Cre d it do es n ot wa rran t th e ac cu rac y o r c o mp leten ess o f th is repo rt o r any o f the in fo rma tio n con ta ine d h e re in . In te r -Cre d it is not lia b le fo r a ny loss , 7
d a mag e o r in ju ry caus ed b y n eg lig en ce o r o th e r ac t o r o f Inte r -Cred it in p ro cu ring , co lle c tin g , p rep a ring o r co mmu n ica ting any su ch in fo rma tio n . Re lia nc e on any
in fo rma tion c onta ined h e re in sh a ll be so le ly at the us e r’s ris ks and sh a ll cons titute a wa iv e r o f an y c la im a ga inst and a re leas e o f Inte r -Cre d it fro m any lia b ility wh atso eve r.
T h is repo rt is fu rn is hed in stric t con fid enc e fo r you r e xc lus ive use fo r le g itima te bus iness pu rposes and fo r no o th e r pu rpose . Th is re po rt mus t no t be co mmu n ic ated to the
p e rson o r firm re p o rte d on o r to any othe r pa rty . In a e pting th is re po rt yo u h e re by ag ree to be resp ons ib le fo r an d to inde mn ify Inte r -Cred it a ga inst any an d a ll d a mag es and
lo ss a ris ing fro m th e re po rt and /o r b re ac h o f a ny o f t e abo ve cond itions . An y re p rodu c tion , rep lic a tion o r o th e r use o f th is re po rt withou t th e e xp ress ed written cons ent of
In te r -Cre d it is p ro h ib ited .
 F UJIAN F ENZHONG M EDIA CO., LTD.

LEVER AGE: AVER AGE

l The debt ratio of SC is low.
l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fair.

REMARKS

SC is considered medium-sized in its line with fair financial conditions. Credit dealings of small
amount can be considered for it at present.

END OF THIS REPORT

NO TIC E: In te r -Cre d it do es n ot wa rran t th e ac cu rac y o r c o mp leten ess o f th is repo rt o r any o f the in fo rma tio n con ta ine d h e re in . In te r -Cre d it is not lia b le fo r a ny loss , 8
d a mag e o r in ju ry caus ed b y n eg lig en ce o r o th e r ac t o r o f Inte r -Cred it in p ro cu ring , co lle c tin g , p rep a ring o r co mmu n ica ting any su ch in fo rma tio n . Re lia nc e on any
in fo rma tion c onta ined h e re in sh a ll be so le ly at the us e r’s ris ks and sh a ll cons titute a wa iv e r o f an y c la im a ga inst and a re leas e o f Inte r -Cre d it fro m any lia b ility wh atso eve r.
T h is repo rt is fu rn is hed in stric t con fid enc e fo r you r e xc lus ive use fo r le g itima te bus iness pu rposes and fo r no o th e r pu rpose . Th is re po rt mus t no t be co mmu n ic ated to the
p e rson o r firm re p o rte d on o r to any othe r pa rty . In a e pting th is re po rt yo u h e re by ag ree to be resp ons ib le fo r an d to inde mn ify Inte r -Cred it a ga inst any an d a ll d a mag es and
lo ss a ris ing fro m th e re po rt and /o r b re ac h o f a ny o f t e abo ve cond itions . An y re p rodu c tion , rep lic a tion o r o th e r use o f th is re po rt withou t th e e xp ress ed written cons ent of
In te r -Cre d it is p ro h ib ited .