MIRA
INFORM REPORT
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Report Date : |
20.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHANGZHOU NESL SOLARTECH CO., LTD. |
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Registered Office : |
5A, Jintong Industrial Park, No.8 Xihu Road,
Wujin High Tech Industrial Zone, Changzhou, Jiangsu Province, 213164 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
16.10. 2006 |
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Com. Reg. No.: |
320483000131166 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Researching, Manufacturing and Installing
Solar Panels, PV Application and PV Generating System. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
CHANGZHOU NESL SOLARTECH CO., LTD.
5A, JINTONG
INDUSTRIAL PARK, NO.8 XIHU ROAD, WUJIN HIGH TECH INDUSTRIAL ZONE, CHANGZHOU,
JIANGSU PROVINCE, 213164 PR CHINA
TEL:
0086-519-86196000 FAX: 0086-519-86196007
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 16, 2006
REGISTRATION NO. : 320483000131166
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : MR. LIU LIANGHUA (CHAIRMAN)
STAFF STRENGTH : 130
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 48,780,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 18,810,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.9815 = USD 1
Adopted
abbreviations:
ANS - amount
not stated
NS - not stated
SC - subject
company (the company inquired by you)
NA - not
available
CNY - China Yuan
Renminbi
SC was registered as a
limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Oct. 16, 2006.
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 researching,
manufacturing and installing solar modules and solar lights; importing and exporting commodities and technologies, excluding export commodities limited or prohibited by the state.
SC is
mainly engaged in researching, manufacturing and installing solar panels, PV
application and PV generating system.
Mr.
Liu Lianghua has been legal representative and chairman of SC since 2006.
SC is known to have approx. 130 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Changzhou. Our checks reveal that SC rents the total premise about 6,640 square
meters.
http://www.nesl.cn/intro.asp The design is professional and the content is well organized.
At present it is both in Chinese and English versions.
E-Mail: tgj@nesl.cn
SC started normal operation
in April of 2007.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Liu Lianghua 20
Wang Xionggang 80
l
Legal representative and
general manager:
Mr. Liu Lianghu, born in 1974 with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2006 to present Working in SC as legal representative and general
manager.
l
Chairman:
Mr. Wang Xionggang , born in 1973 with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman.
SC started normal operation
in April of 2007.
SC is mainly
engaged in researching, manufacturing and installing solar panels, PV
application and PV generating system.
SC’s products mainly include: 125 Mono-crystalline Silicon
Module, 156 Mono-crystalline Silicon Module, Multi-crystalline Silicon Module,
Transparent Solar Module, a-Si Solar Module and Solar lamps and lanterns.
SC sources its materials 90% from domestic market and 10% from
the overseas market. SC sells 90% of its products to overseas market, mainly in Germany, Spain and
Italy, and 10% in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C, and Credit of
30-60 days.
*Major Suppliers*
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Zhongshen International (Shanghai) Co., Ltd.
*Major Customers*
==============
Changzhou Sky Global New Energy Institute
SC is known to invest in the following company:
Changzhou Dingli Investment Co., Ltd.
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’s suppliers
declined to make any comments.
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.
China
Construction Bank Changzhou Qingliang Sub-branch
AC#32001628936059999999
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Cash
& bank |
1,830 |
1,800 |
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Bills
receivable |
0 |
0 |
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Accounts
receivable |
0 |
3,280 |
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Other
receivables |
1,280 |
1,120 |
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Advances to
suppliers |
1,080 |
1,040 |
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Inventory |
1,090 |
13,060 |
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Prepaid expenses |
180 |
140 |
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Subsidies
receivable |
0 |
730 |
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Other
current assets |
0 |
0 |
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------------------ |
------------------ |
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Current
assets |
5,460 |
21,170 |
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Fixed assets |
1,330 |
2,550 |
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Fixed
assets net value |
1,330 |
2,550 |
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Projects
under construction |
0 |
0 |
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Long
term investment |
0 |
3,500 |
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Other
assets |
960 |
1,100 |
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------------------ |
------------------ |
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Total
assets |
7,750 |
28,320 |
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============= |
============= |
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Short
loans |
-12,500 |
9,680 |
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Bills
payable |
0 |
0 |
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Accounts
payable |
390 |
1,580 |
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Welfare
payable |
10 |
80 |
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Advances from
clients |
60 |
80 |
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Accrued
payroll |
100 |
260 |
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Tax
payable |
-150 |
-2,650 |
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Other
payable |
20 |
420 |
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Surcharge
payable |
0 |
60 |
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Other
current liabilities |
0 |
0 |
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Current
liabilities |
-12,070 |
9,510 |
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Long
term liabilities |
0 |
0 |
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Total
liabilities |
-12,070 |
9,510 |
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Equities |
19,820 |
18,810 |
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Total
liabilities & equities |
7,750 |
28,320 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
6 |
48,780 |
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Cost of goods
sold |
0 |
46,060 |
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Sales expense |
0 |
1,150 |
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Management expense |
170 |
2,150 |
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Finance expense |
0 |
220 |
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Profit before
tax |
-170 |
-1,010 |
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Less: profit tax |
0 |
0 |
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Profits |
-170 |
-1,010 |
Important Ratios
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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*Current ratio |
-0.45 |
2.23 |
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*Quick ratio |
-0.36 |
0.85 |
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*Liabilities
to assets |
-1.56 |
0.34 |
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*Net profit
margin (%) |
-2,833.33 |
-2.07 |
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*Return on total
assets (%) |
-2.19 |
-3.57 |
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*Inventory
/Turnover ×365 |
66,309 days |
98 days |
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*Accounts
receivable/Turnover ×365 |
0 |
25 days |
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*Turnover/Total
assets |
0.001 |
1.72 |
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* Cost of
goods sold/Turnover |
0 |
0.94 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in 2007.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high in 2007, 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.
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The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in an average level, comparing with the
size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall
financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with a short
history. The large amount of inventory could be a threat to SC’s financial
condition. A credit line up to USD 100,000 would appear to be within SC’s
capacities.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)