MIRA
INFORM REPORT
|
Report Date : |
23.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG YUHUI SOLAR ENERGY SOURCE CO., LTD. |
|
|
|
|
Formerly Known as: |
Zhejiang Fengding Building Materials Machinery Manufacturing Co., Ltd. |
|
|
|
|
Registered Office : |
No. 8 Baoqun
Road, Yaozhuang Industrial Park, Jiashan County, Zhejiang Province 314117 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
07.08.2003 |
|
|
|
|
Com. Reg. No.: |
330400400003683 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
manufacturing and selling solar batteries, single-crystal silicon,
polycrystal silicon, etc. |
|
|
|
|
No. of Employees : |
4500 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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 & address
Zhejiang Yuhui Solar
Energy Source Co., Ltd.
(TRADE NAME:
Renesola Zhejiang Ltd.)
NO. 8 BAOQUN ROAD,
YAOZHUANG INDUSTRIAL PARK
JIASHAN COUNTY,
ZHEJIANG PROVINCE 314117 PR CHINA
TEL: 86 (0)
573-84773428
FAX: 86 (0)
573-84773063
EXECUTIVE SUMMARY
Date of Registration : AUGUST 7, 2003
REGISTRATION NO. : 330400400003683
LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise
REGISTERED CAPITAL : USD 321,600,000
staff : 4,500
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue : CNY 5,784,251,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 3,181,884,000 (AS OF DEC. 31, 2011)
WEBSITE : www.renesola.com
E-MAIL :
sales@renesola.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairLY GOOD
OPERATIONAL TREND : FAIRLY
STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.18 = 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
***Note: SC’s name should be the heading one, while
SC also uses the given name (Renesola Zhejiang Ltd.) as its trade name.
SC was
established as a Chinese-foreign equity joint venture enterprise of PRC on
August 7, 2003. However, SC
changed to present legal form, and was registered as a wholly foreign-owned
enterprise of PRC with State Administration for Industry & Commerce (SAIC)
under registration No.: 330400400003683
in April 2006.
SC’s Organization Code Certificate
No.: 75301996-1
SC’s registered capital: USD 321,600,000
SC’s paid-in capital: USD 321,600,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2005-04 |
Legal Representative |
Yu Yefei |
Li Xianshou |
|
Shareholder (s) (% of
Shareholding) |
Yu Yefei 15% Pu Guitong 20% Qian Chenglin 25% Fei Ming 40% |
Yuhuan Solar
Energy Source Co. Ltd. 15% Qian Chenglin 25% Zhejiang Yuhuan
Solar Energy Source Co. Ltd. 60% |
|
|
2005-06 |
Company Name |
Zhejiang
Fengding Building Materials Machinery Manufacturing Co., Ltd. |
Zhejiang Yuhui Solar
Energy Source Co., Ltd. |
|
2005-12 |
Shareholder (s) (% of
Shareholding) |
Yuhuan Solar
Energy Source Co. Ltd. 15% Qian Chenglin 25% Zhejiang Yuhuan
Solar Energy Source Co. Ltd. 60% |
Newl-Solar GMBH 25% Zhejiang Yuhuan
Solar Energy Source Co. Ltd. 75% |
|
2006-04 |
Shareholder (s) |
Newl-Solar GMBH 25% Zhejiang Yuhuan
Solar Energy Source Co. Ltd. 75% |
Ruiyu Solar
Energy Technology Co., Ltd. 25% Zhejiang Yuhuan
Solar Energy Source Co. Ltd. 75% |
|
Registered Capital |
USD 1,500,000 |
USD 16,500,000 |
|
|
Legal Form |
Chinese-Foreign Equity Joint
Venture Enterprise |
Wholly
Foreign-Owned Enterprise |
|
|
Shareholder (s) (% of
Shareholding) |
Ruiyu Solar
Energy Technology Co., Ltd. 25% Zhejiang Yuhuan
Solar Energy Source Co. Ltd. 75% |
Renesola Ltd. (B.V.I.) 100% |
|
|
2006-10 |
Registered Capital |
USD 16,500,000 |
USD 28,500,000 |
|
2006-11 |
Registered Capital |
USD 28,500,000 |
USD 34,500,000 |
|
2007-01 |
Registered Capital |
USD 34,500,000 |
USD 45,000,000 |
|
2007-04 |
Registered Capital |
USD 45,000,000 |
USD 58,500,000 |
|
2007-06 |
Registered Capital |
USD 58,500,000 |
USD 78,500,000 |
|
Registered Capital |
USD 78,500,000 |
USD 90,500,000 |
|
|
2007-08 |
Registered Capital |
USD 90,500,000 |
USD 102,500,000 |
|
Registration No. |
002688 |
330400400003683 |
|
|
2008-03 |
Registered Capital |
USD 102,500,000 |
USD 132,400,000 |
|
2008-07 |
Registered Capital |
USD 132,400,000 |
USD 182,400,000 |
|
-- |
Registered Capital |
USD 182,400,000 |
USD 321,600,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Renesola Ltd. (B.V.I.) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman,
and General Manager |
Li
Xianshou |
|
Director |
Lian
Zhengmin |
|
Dong Xiangjun |
|
|
Wu Yuncai |
|
|
Lian Xiahe |
|
|
Supervisor |
Wang
Jiandong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Renesola Ltd. (B.V.I.) 100
---------------------------
ReneSola Ltd. is a public company listed on
both the New York Stock Exchange (Ticker: SOL) and the Alternative Investment
Market (AIM) of the London Stock Exchange (Ticker: SOLA.L).
MANAGEMENT
Li
Xianshou, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 330106196808010015
Ø
Age: 45
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman and
general manager
Director
----------
Lian Zhengmin ID#
332627197205130216
Dong Xiangjun ID#
332627680524019
Wu Yuncai ID#
332627671104001
Lian Xiahe ID#
332627700701008
Supervisor
-------------
Wang Jiandong ID# 310109196310131691
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing and selling monocrystalline
silicon rods, monocrystalline silicon, polycrystalline silicon ingot,
polysilicon film, solar cell, the solar battery component, solar energy lamp,
solar controller, solar inverter, solar polysilicon feedstock, and recycling
sand slurry for wafer cutting used for solar cell; ordinary commercial housing
development and management (Jiashan 2006-20); wholesaling inverter, lighting
lamps, brackets, cables, commission agency, import & export business, and
technology consulting service.
SC is mainly engaged
in manufacturing and selling solar batteries, single-crystal silicon,
polycrystal silicon, etc.
SC’s products
mainly include: single-crystal silicon rod, single-crystal silicon chip,
polycrystal silicon bulk, polycrystal silicon chip, solar battery, solar
module, solar lights, solar controller, solar inverter, solar polysilicon
materials, etc.
SC sources its materials 60%
from domestic market, and 40% from overseas market. SC sells 50% of its
products in domestic market, and 50% to overseas 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.
Staff & Office:
--------------------------
SC is
known to have approx. 4,500 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is
known to have the following subsidiaries at present,
Sichuan ReneSola
Silicon Material Co., Ltd.
Sichuan Silide
Composite Materials Co., Ltd.
Zhejiang Ruiyi New
Materials Co., Ltd.
Jiashan Xujing Real
Estate Development Co., Ltd.
Qinghai Yuhui New
Energy Co., Ltd.
Zhejiang Siboen New
Materials Technologt Co., Ltd.
Wuxi Jiacheng Solar
Technology Co., Ltd.
Zhejiang ReneSola
Photovoltaic Materials Co., Ltd.
Sichuan Ruiyi
Photovoltaic Materials Co., Ltd.
Sichuan Ruixin
Photovoltaic Materials Co., Ltd.
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:
Industrial
and Commercial Bank of China Jiashan Sub-branch
AC#:
1204070009242025955
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
1,270,670 |
1,580,424 |
|
|
Held for trading financial assets |
0 |
5,716 |
|
Notes receivable |
0 |
174,605 |
|
Accounts
receivable |
666,380 |
635,906 |
|
Advances to
suppliers |
847,990 |
956,617 |
|
Other receivable |
109,590 |
445,855 |
|
Dividend
receivable |
0 |
342,430 |
|
Inventory |
836,990 |
786,877 |
|
Deferred
expenses |
0 |
0 |
|
Non-current
assets within one year |
0 |
4,373 |
|
Other current
assets |
23,170 |
2,678 |
|
|
------------------ |
------------------ |
|
Current assets |
3,754,790 |
4,935,481 |
|
Long-term
investment |
549,500 |
876,100 |
|
Fixed assets |
2,349,240 |
2,545,788 |
|
Construction in
progress |
14,920 |
226,737 |
|
Intangible
assets |
640,210 |
80,636 |
|
Long-term prepaid
expenses |
0 |
10,241 |
|
Deferred income
tax assets |
0 |
136,947 |
|
Other
non-current assets |
0 |
104,145 |
|
|
------------------ |
------------------ |
|
Total assets |
7,308,660 |
8,916,075 |
|
|
============= |
============= |
|
Short-term loans |
1,781,890 |
2,384,710 |
|
Trading
financial liabilities |
0 |
2,027 |
|
Notes payable |
148,310 |
325,389 |
|
Accounts payable |
1,126,300 |
1,643,070 |
|
Wages payable |
75,770 |
28,095 |
|
Taxes payable |
-37,500 |
-92,328 |
|
Interest payable |
0 |
6,150 |
|
Advances from
clients |
548,870 |
408,270 |
|
Other payable |
98,200 |
186,649 |
|
Non-current
liabilities within one year |
388,200 |
203,000 |
|
Other current
liabilities |
9,360 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
4,139,400 |
5,095,032 |
|
Non-current
liabilities |
216,490 |
639,159 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
4,355,890 |
5,734,191 |
|
Equities |
2,952,770 |
3,181,884 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
7,308,660 |
8,916,075 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
6,472,380 |
5,784,251 |
|
Cost of sales |
4,755,370 |
5,489,597 |
|
Taxes and surcharges |
-- |
10,988 |
|
Sales expense |
9,180 |
15,689 |
|
Management expense |
358,160 |
323,451 |
|
Finance expense |
123,570 |
95,896 |
|
Investment
income |
-250 |
370,838 |
|
Profit before
tax |
1,214,220 |
241,519 |
|
Less: profit tax |
5,210 |
-65,174 |
|
1,209,010 |
306,693 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.91 |
0.97 |
|
*Quick ratio |
0.70 |
0.81 |
|
*Liabilities
to assets |
0.60 |
0.64 |
|
*Net profit
margin (%) |
18.68 |
5.30 |
|
*Return on
total assets (%) |
16.54 |
3.44 |
|
*Inventory /
Revenue ×365 |
48 days |
50 days |
|
*Accounts receivable/
Revenue ×365 |
38 days |
41 days |
|
*
Revenue/Total assets |
0.89 |
0.65 |
|
* Cost of
sales / Revenue |
0.73 |
0.95 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line, and
it decreased in 2011.
l
SC’s net profit margin is fairly good in 2010,
average in 2011.
l
SC’s return on total assets is fairly good in 2010,
average in 2011
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear large.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable
financial conditions. The large amount of short-term loans may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.17 |
|
UK Pound |
1 |
Rs.82.45 |
|
Euro |
1 |
Rs.70.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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.