MIRA
INFORM REPORT
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Report Date : |
13.12.2012 |
IDENTIFICATION DETAILS
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Name : |
CNPV DONGYING SOLAR POWER COMPANY LTD. |
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Registered Office : |
Victory Industry Park, Dongying City,
Shandong Province 257000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
21.04.2006 |
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Com. Reg. No.: |
370500400001382 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject
is engaged in manufacturing and selling photovoltaic equipment. |
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No. of Employees : |
1200 employees |
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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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made on
e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010
China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, creation of a diversified banking system, development of stock
markets, rapid growth of the private sector, and opening to foreign trade and
investment. China has implemented reforms in a gradualist fashion. In recent
years, China has renewed its support for state-owned enterprises in sectors it
considers important to "economic security," explicitly looking to
foster globally competitive national champions. After keeping its currency
tightly linked to the US dollar for years, in July 2005 China revalued its
currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2010 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic
development has progressed further in coastal provinces than in the interior,
and by 2011 more than 250 million migrant workers and their dependents had
relocated to urban areas to find work. One consequence of population control
policy is that China is now one of the most rapidly aging countries in the
world. Deterioration in the environment - notably air pollution, soil erosion,
and the steady fall of the water table, especially in the North - is another
long-term problem. China continues to lose arable land because of erosion and
economic development. The Chinese government is seeking to add energy
production capacity from sources other than coal and oil, focusing on nuclear
and alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to near 9% for 2011. An economic slowdown in Europe is expected to
further drag Chinese growth in 2012. Debt overhang from the stimulus program,
particularly among local governments, and a property price bubble challenge
policy makers currently. The government's 12th Five-Year Plan, adopted in March
2011, emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent on exports in the
future. However, China has made only marginal progress toward these rebalancing
goals.
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Source : CIA |
Company name & address
CNPV
Dongying Solar Power Company Ltd.
VICTORY INDUSTRY PARK, DONGYING CITY
SHANDONG PROVINCE 257000 PR CHINA
TEL: 86 (0) 546-7795555
FAX: 86 (0) 546-7795777
EXECUTIVE SUMMARY
Date of Registration : APRIL 21, 2006
REGISTRATION NO. : 370500400001382
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : cny 400,000,000
staff : 1,200
BUSINESS CATEGORY : MANUFACTURING
Revenue :
CNY 1,712,280,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 413,070,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.23 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect of
its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a wholly foreign-owned enterprise of PRC on April 21, 2006. However, SC
changed to present legal form, and was registered as Chinese-foreign equity
joint venture enterprise of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 370500400001382 in November 2012.
SC’s Organization Code Certificate No.:
78716223-X
SC’s Tax No.: 37050278716223X
SC’s registered capital: cny 400,000,000
SC’s paid-in capital: cny 400,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2012-11 |
Legal Representative |
Wang Anquan |
Sui
Xiangcun |
|
Registered capital |
CNY 225,000,000 |
cny 400,000,000 |
|
|
Legal Form |
Wholly Foreign-Owned Enterprise |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Shareholder (s) (% of Shareholding) |
CNPV Solar Power Group Limited (Hong Kong)
100% |
Dongying District State Owned Asset
Management Co., Ltd. 50.38% CNPV Solar Power Group Limited (Hong Kong)
49.62% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Dongying District State Owned Asset Management Co., Ltd. |
50.38 |
|
CNPV Solar Power Group Limited (Hong Kong) |
49.62 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Sui Xiangcun |
RECENT DEVELOPMENT
SC has past the certificate of ISO9001:2008, international product
quality (IEC61215) and safety (IEC61730).
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Dongying District State Owned Asset
Management Co., Ltd. 50.38
CNPV Solar Power Group Limited
(Hong Kong) 49.62
u Dongying
District State Owned Asset Management Co., Ltd.
------------------------------------------------------------------------------
Registration No.: 370502018160926
Date of Registration: June 3, 2002
Legal Form: Limited Liabilities Company
Registered Capital: CNY 70,000,000
Legal Representative: Sui Xiangcun
u CNPV
Solar Power Group Limited (Hong Kong)
----------------------------------------------------------------
Registration No.: 1133388
Legal Form: Private
Status: Live
MANAGEMENT
Sui Xiangcun, Legal Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 40
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative and chairman
Also working in Dongying District
State Owned Asset Management Co., Ltd. as legal representative
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling photovoltaic equipment, solar cells and other solar products, and system integration (with permits if needed).
SC is
mainly engaged in manufacturing and selling photovoltaic equipment.
SC’s
products mainly include: high performance standard SPV modules, high
performance premium SPV modules.
SC sources its materials 90% from domestic market and 10% from the overseas market. SC sells 90% of its products to overseas market and 10% in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Customers:
==============
Enel North America
Inc.
Rosenthal
Manufacturing Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 1,200
staff at present.
SC rents an area
as its operating office & factory of approx. 135,000 sq. meters at the
heading address.
RELATED COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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 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
Basic Bank:
Bank of China Dongying Shinan Sub-branch
AC#:
418601632618091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
470,160 |
|
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Accounts
receivable |
233,900 |
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Other receivable |
37,470 |
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Inventory |
190,470 |
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Non-current
assets within one year |
0 |
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Other current
assets |
328,010 |
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|
------------------ |
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Current assets |
1,260,010 |
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Fixed assets |
20,130 |
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Long-term
prepaid expenses |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
566,730 |
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|
------------------ |
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Total assets |
1,846,870 |
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============= |
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Short-term loans |
771,630 |
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Accounts payable |
237,600 |
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Advances from
clients |
7,200 |
|
Other payable |
260 |
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Other current
liabilities |
417,110 |
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|
------------------ |
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Current
liabilities |
1,433,800 |
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Non-current
liabilities |
0 |
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|
------------------ |
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Total
liabilities |
1,433,800 |
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Equities |
413,070 |
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|
------------------ |
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Total
liabilities & equities |
1,846,870 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
1,712,280 |
|
Cost of sales |
1,685,510 |
|
Profit before
tax |
28,560 |
|
Less: profit tax |
3,570 |
|
24,990 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
|
*Current ratio |
0.88 |
|
*Quick ratio |
0.75 |
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*Liabilities
to assets |
0.78 |
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*Net profit
margin (%) |
1.46 |
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*Return on
total assets (%) |
1.35 |
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*Inventory /
Revenue ×365 |
41 days |
|
*Accounts
receivable/ Revenue ×365 |
50 days |
|
*
Revenue/Total assets |
0.93 |
|
* Cost of
sales / Revenue |
0.98 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large in 2011.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
|
UK Pound |
1 |
Rs.87.43 |
|
Euro |
1 |
Rs.70.55 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.