MIRA
INFORM REPORT
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Report Date : |
26.11.2013 |
IDENTIFICATION DETAILS
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Name : |
SUNTECH POWER CO., LTD. |
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Registered Office : |
No. 1888 Liyue Road, Minhang District, Shanghai
201112 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
28.11.2006 |
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Com. Reg. No.: |
310000400491974 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject engaged in manufacturing and selling solar cell materials,
power generation systems |
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No. of Employees : |
784 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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.
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Source
: CIA |
Company name & address
SUNTECH
POWER CO., LTD.
NO. 1888 LIYUE ROAD, MINHANG DISTRICT, SHANGHAI
201112 PR CHINA
TEL: 86 (0) 21-24163888-3745
FAX: 86 (0) 21-24163838
EXECUTIVE SUMMARY
Date of Registration : November 28, 2006
REGISTRATION NO. :
310000400491974
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE :
shi ZHENGRONG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : usd 196,140,000
staff : 784
BUSINESS CATEGORY : MANUFACTURING
Revenue : CNY 1,111,169,000
(AS OF DEC. 31, 2012)
EQUITIES : CNY 325,762,000
(AS OF DEC. 31, 2012)
WEBSITE : www.suntech-power.com
E-MAIL : sales@suntech-power.com
PAYMENT : AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.09 = 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
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established as a wholly
foreign-owned enterprise of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 310000400491974
on November 28, 2006.
SC’s Organization Code Certificate No.:
79566056-2
SC’s registered capital: usd 196,140,000
SC’s paid-in capital: usd 196,140,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Suntech Power Investment Pte. Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Shi Zhengrong 施正荣 |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Suntech Power Investment Pte. Ltd. 100
6 Temasek Boulevard
Singapore, 038986, Singapore
MANAGEMENT
Shi Zhengrong, Legal Representative, Chairman and General
Manager
Gender: M
Age: 50
Nationality: Australia
Passport No.: E7506138
Qualification: Doctor Degree
Working experience
(s):
From 2006 to present, working in SC as legal representative, chairman
and general manager
Also working in Suntech Energy Engineering Co., Ltd., Luoyang Suntech
Power Co., Ltd., Shenzhen Suntech Power Co., Ltd., Wuxi Suntech Power Co.,
Ltd., Yangzhou Suntech Power Co., Ltd. and Sichuan Suntech Power Co., Ltd. as
legal representative
BUSINESS
OPERATION
SC’s registered business scope includes researching,
designing, developing and manufacturing
solar cell materials, power generation systems; selling its owned
products, providing related technical consulting and technical services;
importing and exporting above related goods and technology.
SC is mainly engaged in manufacturing and selling solar cell materials,
power generation systems.
SC’s products mainly include: solar cell materials, power generation
systems.
SC sources its materials 60% from domestic market, and 40% from overseas
market, mainly Europe and America. SC sells 25% of its products in domestic
market, and 75% to overseas market, mainly Europe and America.
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:
Ficosa North America Corp
Suntech America Inc.
6 N Sillcon Inc.
Staff &
Office:
SC is known to have approx. 784
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
Suntech (China) Investment Co., Ltd.
Suntech Energy Engineering Co., Ltd.
Wuxi Suntech Power Co., Ltd.
Yangzhou Suntech Power Co., Ltd.
Etc.
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Current assets |
711,366 |
-- |
292,269 |
|
Long term investment |
0 |
-- |
0 |
|
Fixed assets |
1,715,532 |
-- |
1,369,777 |
|
Intangible assets |
1,142 |
-- |
16,532 |
|
Other assets |
120,926 |
-- |
169,258 |
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|
------------- |
------------- |
------------- |
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Total assets |
2,548,966 |
3,187,915 |
1,847,836 |
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|
------------- |
------------- |
------------- |
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Current liabilities |
988,049 |
2,171,993 |
906,872 |
|
Long term liabilities |
1,249,598 |
519,292 |
615,202 |
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|
------------- |
------------- |
------------- |
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Total liabilities |
2,237,647 |
2,691,285 |
1,522,074 |
|
Equities |
311,349 |
496,630 |
325,762 |
|
|
------------- |
------------- |
------------- |
|
Revenue |
1,014,735 |
2,274,607 |
1,111,169 |
|
Cost of sales |
947,898 |
2,039,596 |
1,031,586 |
|
Profit before tax |
-473,966 |
121,126 |
-18,796 |
|
Less: profit tax |
0 |
0 |
-23,721 |
|
Profits |
-473,966 |
121,126 |
4,925 |
Important Ratios
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.72 |
-- |
0.32 |
|
*Liabilities to assets |
0.88 |
0.84 |
0.82 |
|
*Net profit margin (%) |
-46.71 |
5.33 |
0.44 |
|
*Return on total assets (%) |
-18.59 |
3.80 |
0.27 |
|
*Revenue / Total assets |
0.40 |
0.71 |
0.60 |
|
*Cost of sales / Revenue |
0.93 |
0.90 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is poor in 2010 and average
in 2011 and 2012.
·
SC’s return on total assets is poor in 2010 and
average in 2011 and 2012.
·
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a poor
level.
·
SC’s revenue is in a fair 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: Fair.
CONCLUSIONS
SC is considered large-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.58 |
|
|
1 |
Rs.101.42 |
|
Euro |
1 |
Rs.84.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
---- |
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.