China Business Compliance Report
D-U-N-S® NUMBER
Company Name

65-450-2665
Sample Report (China) Co., Ltd.

Business Address
Telephone Number

中国样本报告有限公司
No.318, Fuzhou Road, Huangpu District, Shanghai (200001)
021-12345678

Prepared by:
Delivery Date:

Shanghai Huaxia Dun & Bradstreet BusinessInformation Consulting Co., Ltd.
August 31, 2015

Disclaimer:
THIS REPORT MAY NOT BE REPRODUCED IN WHOLE OR IN PART IN ANY FORM OR MANNER WHATSOEVER
This report, furnished pursuant to contract for the exclusive use of the subscriber as one factor to consider in connection with credit, insurance,
marketing or other business decisions, contains information compiled from sources which Shanghai Huaxia Dun & Bradstreet BusinessInformation Consulting Co., Limited (Huaxia Dun & Bradstreet) does not control and whose information, unless otherwise indicated in thereport, has not been verified. In furnishing this report, Huaxia Dun & Bradstreet in no way assumes any part of the user's business risk, does
not guarantee the accuracy, completeness, or timeliness of the information provided, and shall not be liable for any loss or injury whateverresulting from contingencies beyond its control or from negligence.
All copyrights belong to Huaxia Dun & Bradstreet and Huaxia Dun & Bradstreet reserves the right of final explanation.

Summary
Legal
Risk

Identification

Regulatory
Risk

AdverseMediaBlack/Sanction
List

Potential Business
Conflict of Interest (withManagement Team)

CreditRisk

Potential Risk Signals
Legal Risk
Alert

Relevant legal risk information about subject: 2 records (Page 4: Compliance Check Details – Legal
Risk)

Regulatory Risk


Subject was classified as Enterprise with rather poor credit according to the search in General
Administration of Customs of the People's Republic of China website and is suitable for under close
supervision (Page 4: Compliance Check Details – Regulatory Risk)

Potential Business Conflict of Interest (with Management Team) Principal(s) was found 5 clues of potential business interest conflicts via inquiry of HDBC Commercial
Database (Page 6: Compliance Check Details – Potential Conflict of Business Interest) Individual shareholder(s) was found 3 clues of potential business interest conflicts via inquiry of HDBC
Commercial Database (Page 8: Compliance Check Details – Potential Conflict of Business
Interest)Attention

Adverse Media Parent company was matched 1 adverse media records (Page 7: Compliance Check Details –Adverse Media)
 Subsidiary was matched 2 adverse media records (Page 9: Compliance Check Details –– Adverse
Media)
 Affiliate(s) was matched 1 adverse media records (Page 10: Compliance Check Details –– Adverse
Media)

Black/Sanction List
 Ultimate parent company was found in black list or sanction list. (Page 9: Compliance Check Details–– Black/Sanction)

Risk Analysis Summary：SummarySubject has records on legal risks.
Subject was classified as Enterprise with rather poor credit and is suitable for under close
supervision.
Potential Business Interest Conflict with Management Team has been found.
Subject’s parent company/ related company was matched 4 adverse media records
Ultimate parent company was found in black list or sanction list.

Suggestions and Recommended Actions：

Need subject providing instructions to further assess the impact of compliance

For the explanation of HDBC Compliance Report Red/Yellow/Green Lights, please refer to appendix.
Potential Business Interest Conflict Clue is based on the matching result with HDBC database.
This cannot rule out the possibility of same names and is for reference only.

1

Contents
4

1. SUBJECT
1.1 IDENTIFICATION

4

1.2 PRINCIPAL(S)4

1.3 RELATED COMPANIES

4

1.4 COMPLIANCE CHECK RESULT

5

1.5 COMPLIANCE CHECK DETAILS

5

1.6 CREDIT RISK

67

2. PRINCIPAL(S)2.1 PRINCIPAL(S)7

2.2 COMPLIANCE CHECK RESULT

8

2.3 COMPLIANCE CHECK DETAILS

8

9

3. PARENT COMPANY
3.1 PARENT COMPANY

93.2 COMPLIANCE CHECK RESULT

9

3.3 COMPLIANCE CHECK DETAILS

994. MINOR & INDIVIDUAL SHAREHOLDER(S)4.1 MINOR SHAREHOLDER(S)9

4.2 COMPLIANCE CHECK RESULT

10

4.3 COMPLIANCE CHECK DETAILS

10

4.4 INDIVIDUAL SHAREHOLDER(S)10

4.5 COMPLIANCE CHECK RESULT

10

4.6 COMPLIANCE CHECK DETAILS

10

5. ULTIMATE PARENT

11

5.1 ULTIMATE PARENT

11

5.2 COMPLIANCE CHECK RESULT

11

5.3 COMPLIANCE CHECK DETAILS

11

11

6. SUBSIDIARIES
6.1 SUBSIDIARIES

11

6.2 COMPLIANCE CHECK RESULT

11

6.3 COMPLIANCE CHECK DETAILS

1212

7. AFFILIATES
7.1 AFFILIATES

12

7.2 COMPLIANCE CHECK RESULT

12

7.3 COMPLIANCE CHECK DETAILS

12

2

13

8. BRANCHES
8.1 BRANCHES

13

8.2 COMPLIANCE CHECK RESULT

13

8.3 COMPLIANCE CHECK DETAILS

13

14

9. APPENDIX
9.1INFORMATION CHECKLIST

149.2 HDBC CHECK RESULTS RED/YELLOW/GREEN LIGHTS EXPLANATIONS

15

9.3 CUSTOMS REMARK

15

9.4 GLOSSARY OF TERMS

163

1. SUBJECT
1.1 Identification
Registration Name

中国样本报告有限公司

English Name

Sample Report (China) Co., Ltd.

Started Year

1989

Type of Business

Sino-foreign Joint Venture

Registration Date

Feb. 26, 1989

License Expiry Date Feb. 25, 2031

Shanghai Administration for Industry
Registration Authority
Tax No.
& Commerce Jiading Branch
National
Credibility Code91440300060292148N
Organization Code

31010667354XXXX
67354XXXX

Registration No.

31010602000XXXXRegistration Status Active

Registered Capital

RMB 15,500,000

Operation Status

ActiveLegal Representative Tian HUA (华田)Registered Address

No.3, Yongjia Road, Wuniu Industry Zone, Jiading Dist., Shanghai

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 andbeing an agent of import and export of variety of commodities and technologies (except thoselimited and prohibited by State)

Other License

License Name, Licensing Authority, Validation Date, License Number

Annual Report

The 2014 annual report of subject is published on Mar. 1, 2015.

1.2 Principal(s)Chairman of Director
also Legal
Representative

Tian HUA (华田)Finance Director

Si LI (李四)1.3 Related Companies
ParentCompany
Shareholding Minor
Structure
Shareholder(s)Individual
Shareholder(s)Sample Report Parent Company(Shareholding Proportion：60%)
Sample Report Minor Shareholder Co., Ltd.1 (Shareholding Proportion：20%);
Sample Report Minor Shareholder Co., Ltd.2 (Shareholding Proportion：10%)
San ZHANG(Shareholding Proportion：10%)

Ultimate Parent

China Sample Group Co., Ltd.

Subsidiary(ies)

Sample Report Subsidiary Co., Ltd. (% owned by subject：100%)

Affiliate(s)Sample TW Co., Ltd. (% owned by subject：30%)

Branch(es)Sample Report Branches Co., Ltd.

Change History

4Company Name
From

China Sample Group Co., Ltd. Previous Name

Changed toCurrent Status

Change Date 2015-02-18

Legal Representative
From

Legal Representative Previous Name

Changed toCurrent Status

Change Date 2015-01-14

Shareholder
From

Shareholder Previous Name

Changed toCurrent Status

Change Date 2014-12-20

1.4 Compliance Check Result
Identification

 Abnormal

No Match

 Adverse MediaNo Match Legal Risk

Match ※

 Black/Sanction List

No Match Regulatory Risk

Match ※

 Corporate Bribery File /1.5 Compliance Check Details
Compliance Check Details – Legal Risk
Judgment Date

Oct 19, 2010

Court

District Court Judgment

Plaintiff(s)Hope Shanghai Company

Type

Business dispute

Case Details

Shanghai No.2 Intermediate People’s Court - (2010) Hu Er Zhong Min Er (Min) Chu No.9. The caseis closed.

Judgment Date

Mar 13, 2010

Court

District Court Judgment

Plaintiff(s)N/ACase Details

Shanghai Higher People’s Court - (2010) Hu Fa Zhi Zi No.02695. Currently, the case is still ongoing.

Judgment

To compensate the plaintiff with reimbursement of 3,174.00 RMB

Compliance Check Details – Regulatory Risk
Customs Code

Credit Class

Customs Deregistration

The Validity of Declaration

1234567890

Enterprise with rather
poor credit

NormalJul. 31, 2016

Compliance Check Details –– Corporate Bribery File
Subject declined to provide its relevant documents, therefore no corporate bribery file of subject is available.
51.6 Credit Risk
D&B Rating
Financial Strength

4AA(Registered Capital between RMB 85,000,000 and RMB 449,000,000)

The Composite
Credit Appraisal

3

Overall Credit Condition which is considered Fair

D&B EMMA Score
EMMA Score: 5

EMMA Score Evaluation
Subject’s EMMA score is mainly impacted by the following risk drivers:
 Subject has a long history of 23 years, donating a lower risk level.
 Subject’s history is Clear (Complete Shareholder(s) and management information), which indicates a lower risk level.
 Subject is a state-owned enterprise, which is classified as a medium risk type of business.
 Subject/Industry PAYDEX® shows the company/industry has some delay payment, indicating medium risk.
By evaluating all risk factors, the company is assigned with EMMA score of “5”, indicating “Slight Below Average
Risk”.

Industry Group Standard
Industry Group Description

Lighting Equipment, nec

Industry Group EMMA Score(Quartile Values)

Lower Quartile
MedianUpper Quartile

5
6
7

D&B PAYDEXWhen weighted by value, paments to suppliers
average 29 days beyond terms based on payments
collected over the last
24 months
This business has a lower PAYDEX thanits industry

When weighted by value, payments to suppliers average 14
days beyond terms based on payments collected over thelast 24 months
 Industry Name: Lighting equipment, nec
 Industry Median:71
 Upper/Lower Quartile:80/58
 Based on:152 businesses

D&B PAYDEX® KEY

 High risk of late payment（average 30 to 120 days beyond terms）
6 Medium risk of late payment （average 30+ days or less beyond terms）
 Low risk of late payment （average prompt to 30+ days sooner）
Risk Assessment MatrixInterpretation and Analysis of Risk Assessment Matrix According to the Risk Assessment Matrix, subject is rated as "BC", which represents the subject belongs to thehigh risk group:

The risk level of the subject is medium, which reveals its business risk is at the average level amid all Chinese
enterprises.
The PAYDEX® of subject/industry indicates that its payment experience is below the average level, and some severe
delay payment behaviors exist.

On the whole, Subject's business is operated at the average level and its business risk is also in the general level. While
the subject/industry has some severe delay payment behaviors, therefore, the subject is rated in the high risk group. The
cash settlement and the advance payment are recommended. If the credit policy needs to be granted to the subject, a
decent manual review of the subject based on its capacity, internal policy and risk tolerance is highly recommended, andthe relatively strict credit policy is necessary.

2. PRINCIPAL(S)2.1 Principal(s)Principal 华 田 Tian HUA
Position

Chairman of Director
also Legal Representative

Daily Operation

7

YesEducational Background MasterArea of Responsibility Overall management

Qualification and Title

Senior Economist

Related Working
Experience

Work Experience

Company

Last Position

Time 1

A Co., Ltd

General Manager

Time 2

B Co., Ltd.

Legal Representative

Finance Director

Daily Operation

Over 5 years

Principal 李四 Si LI
Position

Yes

Educational Background MasterArea of Responsibility Overall management

Qualification and Title

Senior Economist

Related Working
Experience

Work Experience

Company

Last Position

Time 1Time 2

C Co., Ltd
D Co., Ltd

Finance Director
Finance Director

Over 6 years

2.2 Compliance Check Result
 Legal Risk

 Adverse MediaNo Match

Potential Conflict of Business

No Match

Potential Conflict of Business Interest (with Management Team) - Match ※ Interest (with Management Team) - No Match
Relevant Work Experience

HDBC Business Database

Potential Conflict of Business Interest (with Management Team) - No Match
Government Official

2.3 Compliance Check Details
Compliance Check Details- Potential Conflict of Business Interest (with Management Team) - HDBC Business Database
5 clues of potential business interest conflicts are founded via inquiry of HDBC Business Database.
Namely, subject’s legal representative (Tian HUA) and Finance Director (Si LI) have the same names with principals offollowing enterprises, but the search may found different people with the same names.
Name: Tian HUAIndustry (By Correlation)

Company Name

Industry 1

Shanghai ** Lubricating Oil Additive Co., Ltd.

Industry 2

Beijing *** Digital Technology Co., Ltd.

Industry 2

Guangzhou **** Accessory Co., Ltd. Zibo Branch

Name: Si LI
8

Industry (By Correlation)

Company Name

Industry 3**********

Industry 4**********

3. PARENT COMPANY
3.1 Parent Company
D-U-N-S® Number

65-466-0166

Shares Held in Subject

60%

Company Name

Sample Report Parent Company

Registered Capital

RMB 200,000,000

Chinese Name

中国样本报告母公司

Type of Businessa limited liability company

Address

No.23, Pingzhong E. Road,
Lanshan Town, Longgang District, Year of Establishment
Shenzhen, GuangdongTel0755-89936799

1985

Fax

0755-89938759

 Black/Sanction List

No Match

3.2 Compliance Check Result
 Legal Risk

No Match

 Adverse MediaMatch ※

3.3 Compliance Check Details
Compliance Check Details – Adverse Media
1 adverse media result was found through the search of disclosed information on the internet. Details as below:
Sample Report Parent Company
Information Source: SINA.COM
Disclose Date: Jan. 1, 2015
Keyword: Sample Report Parent Company product JDD lamps in the United States involving monopoly investigation
Web Link: http://www.sina.com.hk/search?hl=zh-CN&source=hp&q

4. MINOR & INDIVIDUAL SHAREHOLDER(S)4.1 Minor Shareholder(s)D-U-N-S® Number

66-386-8888

Company Name

Sample Report1 Shareholder Co., Ltd.

Chinese Name

中国样本报告参股股东有限公司 1

Address

Hong Kong

9

Shares Held in Subject

20%

D-U-N-S® Number

66-386-0000

Company Name

Sample Report2 Shareholder Co., Ltd.

Chinese Name

中国样本报告参股股东有限公司 2

Address

Macau,

Shares Held in Subject

10%

4.2 Compliance Check ResultLegal Risk

No MatchAdverse MediaNo Match

No Match

Black/Sanction List

4.3 Compliance Check Details
N/A

4.4 Individual Shareholder(s)Individual Shareholder

San ZHANG

Educational Background Master

Qualification and Title

Senior Economist

Daily Operation

Yes

4.5 Compliance Check Result
 Legal Risk

 Adverse MediaNo Match

Potential Conflict of Business

No Match

Potential Conflict of Business Interest (with Management Team) - Match ※ Interest (with Management Team) -HDBC Business Database

No Match

Government Official

4.6 Compliance Check Details
Compliance Check Details- Potential Conflict of Business Interest (with Management Team) - HDBC Business Database
3 clues of potential business interest conflicts were founded via inquiry of HDBC Business Database.
Namely, individual shareholder (San ZHANG) has same name with principals of following enterprises, but the search may
found different people with the same name.
Name: San ZHANG
Industry (By Correlation)

Company Name

Industry 1

Shanghai ** Lubricating Oil Additive Co., Ltd.
10

Industry 2

Beijing *** Digital Technology Co., Ltd.

Industry 2

Guangzhou **** Accessory Co., Ltd. Zibo Branch

5. ULTIMATE PARENT
5.1 Ultimate Parent
D-U-N-S® Number

66-000-8888

Company Name

Sample Report Parent Company

Chinese Name

中国样本报告集团有限公司

5.2 Compliance Check Result
 Legal Risk

No Match

 Adverse MediaNo Match Black/Sanction List

Match ※

5.3 Compliance Check Details
Compliance Check Details –– Black/Sanction List
According to the searches on the blacklists and sanction lists that released by foreign government departments andinternational organizations in including United States, United Kingdom, Australia, European Union and UN Security Council
Committees, the following entity is found in the related list(s).
Entity Name: Sample Report Parent Company
List: SDN List of OFAC, US Department of Treasury

6. SUBSIDIARIES
6.1 Subsidiaries
D-U-N-S® Number

66-386-1234

Company Name

Sample Report Subsidiary Co., Ltd.

Chinese Name

中国样本报告子公司

Address

123 Renmin Rd., Ningbo, Zhejiang% Owned by Subject

100%

6.2 Compliance Check ResultLegal Risk

No MatchAdverse MediaMatch ※

 Black/Sanction List

11

No Match

6.3 Compliance Check Details
Compliance Check Details –– Adverse Media
2 adverse media records are found through the search of disclosed information on the internet. Details as below:
Sample Report Subsidiary Co., Ltd.
Source: Financial Times
Publish Date: Sep. 20, 2014
Keyword: Sample Report Subsidiary Co., Ltd. Product is not qualified
Web Link: http://www.finance.com.hk/search?hl=z36h-CN&source
Source: SINA.COM
Publish Date: Apr. 4, 2015
Keyword: Sample Report Subsidiary Co., Ltd. Was punished for violating the action
Web Link: http://www.sina.com.hk/search?hl=zh26-CN&5source=hp&q

7. AFFILIATES
7.1 Affiliates
D-U-N-S® Number

62-123-4554

Company Name

Sample TW Co., Ltd.

Chinese Name

中国样本报告台湾公司

Address

Taiwan% Owned by Subject

30%

7.2 Compliance Check ResultLegal Risk

No MatchAdverse MediaMatch ※

 Black/Sanction List

No Match

7.3 Compliance Check Details
Compliance Check Details –– Adverse Media
1 adverse media record is found through the search of disclosed information on the internet. Details as below:
Sample TW Co., Ltd.
Source: 163.COM
Publish Date: Jul. 2, 2013
Keyword: Sample TW Co., Ltd. Is facing bankruptcy
Web Link: http://www.163.com.hk/search?hl=z36h-CN&source

128. BRANCHES
8.1 Branches
D-U-N-S® Number

62-123-4550

Company Name

Sample Report Branches Co., Ltd.

Chinese Name

中国样本报告分支机构Address

No. 310, Fuzhou Road, Shanghai, China

8.2 Compliance Check Result
 Legal Risk

No Match

 Adverse MediaNo Match Black/Sanction List

8.3 Compliance Check Details
N/A

13

No Match

9. APPENDIX
9.1 Information Checklist
Focuses
Identification(Registration/
Operation Status)

Verification Process
Full registration and operation status information are obtained and checked via public data
available from the Chinese Government.

Litigation Records

Legal Risk

Subject and its related companies are matched with HDBC Litigation Information Database withmore than 2.19 million corporate litigation records, court information from over 19,000 valid corechannels of 3,000 websites of major courts in China.

Corporate Bribery File
The corporate bribery file that publicly available from Chinese Government is and matchedwith full name of subject.

Administrative Penalties
Regulatory Risk

Adverse MediaThe information are searched and collected via the websites of local official register as well as
major related domestic websites.

Customs
The customs information of subject is searched and collected via the websites of China's
General Administration of Customs and other provincial directly affiliated Customs Units.
Over 1020 thousand media records of Chinese enterprises have been collected in the
HDBC database up to now. The adverse media of subject is not only match via the
database, but also actively searched through over 3,000 core channels and 100,000 active
sub-channels of 350 active mainstream media websites.

Negative network information and risk information come from major search engines suchas open network platforms Google and Baidu.

200 key fields are searched, including bribery, unfair competition, commercial corruption,
revocation, cancellation, frozen account, merger, acquisition, bankruptcy and close-downcase.

If it is available, the adverse media information of linkage(s) will also be searched inaddition to subject and its relevant administrative staffs that are legally disclosed.

Chinese Corporate Blacklist
The public blacklists available from local authorities are searched and matched with subject.
Black/Sanction List

Overseas Sanction List
Subject and its related companies are matched with Overseas Sanction Database with millionsof overseas sanction records including politically exposed person (PEP), sanction list, adverse
media information and enhanced due diligence reports etc.

Potential Conflict ofBusiness Interest (withManagement Team)

Potential business interest conflicts of subject’s management team and principals are screened
via the check through HDBC business database, the browsing in public websites and the searchof relevant work experiences of the management team.

D&B Rating
D&B Rating is generated based on subject’s net worth, registered capital, etc.

D&B EMMA Score
Credit Risk

EMMA Score is generated by evaluating different risk factors.

D&B PAYDEX
D&B PAYDEX is generated from payment performance weighted by the monetary value of thepayment experiences as reported to D&B by trade references.

149.2 HDBC Check Results Red/Yellow/Green Lights Explanations
For compliance check results, please be aware of those highlighted with red or yellow lights.
Signals

Red Light : ALERT

Yellow Light :ATTENTION

Details including
Subject or its principals
Identification (Deregistered registration or out of business operation status)
Legal Risk (criminal litigation records)
Corporate Bribery File (with matched results)Adverse MediaBlack/Sanction List
Credit Risk (Subject is in the “monitoring group” of the Risk Assessment Matrix)

Subject, its related companies or principals
Legal Risk (civil litigation records or the case of action cannot be confirmed)
HDBC is searching the corporate bribery file/corporate bribery file is not available
Regulatory Risk (with administrative penalties in local authorities or major domestic
websites, or rated D Class (rather poor credit) in Customs Class, etc.)
Potential Conflict of Business Interest (with Management Team)Credit Risk (Subject is in “high risk group” in the Risk Assessment Matrix)
Subject’s related companies
Legal Risk (criminal litigation records)
Adverse MediaBlack/Sanction List

Not record is found in above areas so far
Green Light

9.3 Customs Remark’ Classification Management Methods for Customs Enterprises of the PRC’ was carried out on January 1, 2011.
According to the Measures of the Customs of the People's Republic of China on the Classified Management of Enterprises(hereafter “the Measures”), China General Administration of Customs has classified custom supervision category into 5classes, which are AA, A, B, C and D. Enterprises are assessed and classified based on if they comply with laws,
administrative regulations, custom rules, related anti-corruption stipulations and operational management conditions,supervisory and statistic custom records and etc.

Customs ClassAA Class

Enterprise with outstanding credit verified by the customs, suitable for correspondingly easy
clearance measures.

A Class

Enterprise with good credit, suitable for generally easy clearance measures.

B Class

Enterprise with average credit, suitable for routine management.
15

C Class

Enterprise with poor credit, suitable for averagely close supervision measures.

D Class

Enterprise with rather poor credit, suitable for close supervision measures.

According to the notification published by China General Administration of Customs on Nov. 19, 2014 on the implementationof Interim Measures of the Customs of the People's Republic of China for the Administration of Enterprise Credit, the customs
has started classifying companies into the levels of Authorized Enterprise, Average Credit Enterprise and Poor Credit
Enterprise based on their credit status as of Dec. 1, 2014. According to the rules of “the Measures”, companies of AA Classare classified as High Grade Authorized Enterprise; A Class as Averagely Authorized Enterprise; B Class as Average Credit
Enterprise; C and D Classes are to be reassessed accordingly. If companies of C and D Classes are rated as Poor Credit
enterprise, the application period of credit level will remain the same as that of C Class and D Class.

9.4 Glossary of Terms
D-U-N-S® Number
The Data Universal Numbering System (D-U-N-S® Number) is a standard for keeping track of companies all over the world.
D-U-N-S® Number is a unique nine-digit code assigned to each company worldwide.

Standard Industrial Classification (SIC)
The Standard Industrial Classification (SIC) system was first developed by the U.S. Government and has been widelyadopted as the standard coding system used to define and analyze industry structure.

Parent Company
A parent company is a company holding more than 50% equity of subject.

Minor Shareholder
Minor shareholder is a company holding less than 50% equity of subject.

Ultimate Parent
Ultimate parent is the top, most important, responsible entity within the corporate family tree.

Subsidiary Company
A subsidiary is a company with more than 50% equity owned by subject.

Affiliated Company
An affiliated company is a company with 50% equity or less owned by subject.

BranchA Branch is a secondary location for which its headquarters has legal responsibility. Typically, a branch is at a separate
location. However, a branch can be located together with its headquarters or sister branch, provided they have unique,separate, and distinct operations.

-- End of the Report -16