MIRA
INFORM REPORT
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Report Date : |
17.10.2012 |
IDENTIFICATION DETAILS
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Name : |
JA SOLAR TECHNOLOGY
YANGZHOU cO., lTD. |
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Registered Office : |
No. 1, Jianhua Road, Economic Development Zone, Yangzhou, Jiangsu Province, 225009 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
07.09.2006 |
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Com. Reg. No.: |
321000400011025 |
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Legal Form : |
WHOLLY FOREIGN-OWNED ENTERPRISE |
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line of business
: |
Manufacturing, Processing and Selling Solar Batteries and Modules. |
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No. of Employees : |
3,500 |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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.
|
Source
: CIA |
Company name and address
JA SOLAR TECHNOLOGY
YANGZHOU cO., lTD.
NO. 1, JIANHUA ROAD, ECONOMIC DEVELOPMENT ZONE,
YANGZHOU,
JIANGSU PROVINCE, 225009 PR CHINA
TEL: 86 (0) 514-85548888 FAX: 86 (0) 514-85549999
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 7, 2006
REGISTRATION NO. :
321000400011025
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. JIN BAOFANG (CHAIRMAN)
STAFF STRENGTH :
3,500
REGISTERED CAPITAL : USD 260,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 6,856,900,000 (AS OF DEC.
31, 2011)
EQUITIES :
CNY 2,774,620,000 (AS OF DEC.
31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL
KNOWN
EXCHANGE RATE :
CNY 6.26 = USD 1 AS OF
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 wholly foreign-owned enterprise at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license) on Sep. 7, 2006.
Company Status: Wholly foreign-owned
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within the
territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scope includes manufacturing and processing
crystalline silicon rods, crystal silicon chips; manufacturing solar batteries
and panel; researching and developing solar series products, selling self-made
products; technology development and transfer within the field of solar cells;
wholesaling silicon material, silicon rods and silicon chip; import and export
of silicon materials, silicon rods, and silicon chips.
SC is mainly engaged in manufacturing, processing and selling solar
batteries and modules.
Mr. Jin Baofang has been legal representative and chairman of SC since
2006.
SC is known to have approx. 3,500 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the economic development zone of
Yangzhou. Our checks reveal that SC covers an area of around 163,642 square
meters.
http://www.jasolar.com/
The website belongs to JA Solar Co., Ltd. and it includes the information on SC
and its related companies. The design is professional and the content is well
organized. At present it is in Chinese, English and other versions.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
|
Registered capital |
USD 1,030,000 |
USD 90,000,000 |
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|
Registered capital |
USD 90,000,000 |
USD 120,000,000 |
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|
Registered capital |
USD 120,000,000 |
USD 180,000,000 |
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|
Registered capital |
USD 180,000,000 |
USD 200,000,000 |
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|
Registered capital |
USD 200,000,000 |
USD 230,000,000 |
|
Unknown |
Registered capital |
USD 230,000,000 |
Present amount |
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Registration no. |
003464 |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
JA Development Co., Ltd. (B.V.I.) 100
Legal
Representative and Chairman:
Mr. Jin Baofang, born in 1952, holds an associate's
degree from Hebei Broadcast and Television University in China. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2006 to present
Working in SC as legal representative and chairman.
Also working in JA Solar Holdings Co., Ltd. as chairman; working in
Shanghai JA Solar Technology Co., Ltd., Shanghai JA Solar PV Technology Co.,
Ltd., Yangzhou JA Estate Co., Ltd. as legal representative.
Mr. Jin was awarded National Model Worker, Model Worker of Hebei
Province, National "Wuyi" Work Medal, Outstanding Entrepreneur of
Hebei Province, etc., and was the deputy to the 10th and 11th National People's
Congress.
General Manager:
Mr. Wang Junbo is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager
SC is mainly engaged in manufacturing, processing and selling solar
batteries and modules.
SC’s products mainly include: solar battery patches, silicon single
crystal rod, etc.
SC sources its materials 80% from domestic market, and 20% from overseas
markets, mainly Europe. SC sells 40% of its products in domestic market, and
60% to overseas market, mainly Europe and Southeast Asia.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
Note: SC’s
employee refused to release its major customers or suppliers.
JA Solar Holdings Co., Ltd.
Yangzhou JA Estate Co., Ltd.
Shanghai JA Solar Technology Co., Ltd.
INCORPORATION DATE :
NOV. 16, 2006
REGISTRATION NO. :
310000400490678
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. JIN BAOFANG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 20,000,000
Shanghai JA Solar PV Technology Co., Ltd.
INCORPORATION DATE : JUN. 22, 2007
REGISTRATION NO. :
310000400518375
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. JIN BAOFANG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 20,000,000
Etc.
Subsidiary:
Yangzhou JA Solar R&D 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 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.
Bank of China
AC#: N/A
Relationship: Normal
Note: SC’s accountant refused to confirm the given banking information
(Agricultural Bank of China)
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2011 |
|
Cash & bank |
681,710 |
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Inventory |
126,440 |
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Bills receivable |
239,280 |
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Accounts receivable |
2,328,830 |
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Other Accounts receivable |
11,390 |
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Advances to suppliers |
2,004,430 |
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Other current assets |
950 |
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------------------ |
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Current assets |
5,393,030 |
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Fixed assets net value |
1,514,950 |
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Projects under construction |
171,380 |
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Long-term investment |
124,890 |
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Other assets |
129,010 |
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Total assets |
7,333,260 |
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============= |
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Short loans |
89,990 |
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Accounts payable |
2,834,790 |
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Advance from customers |
28,360 |
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Other Accounts payable |
96,530 |
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Taxes payable |
-158,210 |
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Other current liabilities |
630,460 |
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3,521,920 |
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Long term liabilities |
1,036,720 |
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Total liabilities |
4,558,640 |
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Equities |
2,774,620 |
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7,333,260 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2011 |
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Turnover |
6,856,900 |
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Cost of goods sold |
6,492,350 |
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Sales expense |
8,620 |
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Management expense |
74,000 |
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Finance expense |
119,770 |
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Profit before tax |
178,390 |
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Less: profit tax |
37,090 |
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Profits |
141,300 |
Important Ratios
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|
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As
of Dec. 31, 2011 |
|
*Current ratio |
1.53 |
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*Quick ratio |
1.50 |
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*Liabilities to assets |
0.62 |
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*Net profit margin (%) |
2.06 |
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*Return on total assets (%) |
1.93 |
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*Inventory /Turnover ×365 |
7 days |
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*Accounts receivable/Turnover ×365 |
124 days |
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*Turnover/Total assets |
0.94 |
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* Cost of goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears good.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears fairly large.
The short-term loan of SC appears average.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.82 |
|
UK Pound |
1 |
Rs.84.96 |
|
Euro |
1 |
Rs.68.61 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
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 |
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NB |
New Business |
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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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.