MIRA INFORM REPORT
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Report Date : |
28.10.2013 |
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 : |
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Financials (as on) : |
31.12.2012 |
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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 : |
Subject is engaged in manufacturing, processing and selling solar
batteries and modules. |
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No. of Employees : |
2,400 |
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, 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 and address
JA SOLAR TECHNOLOGY YANGZHOU CO., LTD.
NO. 1 JIANHUA ROAD, ECONOMIC DEVELOPMENT ZONE, YANGZHOU JIANGSU
PROVINCE 225009 PR CHINA
TEL: 86 (0) 514-85548162/85548189
FAX: 86 (0) 514-85549999
EXECUTIVE SUMMARY
Date of Registration : SEPTEMBER 7, 2006
REGISTRATION NO. : 321000400011025
LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
JIN
BAOFANG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 260,000,000
staff :
2,400
BUSINESS CATEGORY : MANUFACTURING
& PROCESSING & TRADING
Revenue :
CNY 3,256,160,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 2,571,040,000 (AS OF DEC. 31, 2012)
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 6.08 = 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.: 321000400011025
on September 7, 2006.
SC’s Organization Code Certificate No.:
79231494-7
SC’s Tax No.: 321001792314947
SC’s registered capital: USD 260,000,000
SC’s paid-in capital: USD 260,000,000
Registration Change Record:-
|
Date |
Change of Contents |
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 |
|
2012 |
Registered Capital |
USD 230,000,000 |
USD 260,000,000 |
|
-- |
Registration No. |
003464 |
321000400011025 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
JA Development Co., Ltd. (B.V.I.) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Jin Baofang |
|
General Manager |
Wang Junbo |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name % of Shareholding
JA Development Co., Ltd. (B.V.I.) 100
MANAGEMENT
Jin Baofang, Legal Representative and Chairman
---------------------------------------------------------------------------
Gender: M
Age: 61
ID# 132229195209100019
Qualification: University
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
Wang Junbo,
General Manager
----------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as general manager
BUSINESS OPERATION
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.
Brand: JA
SC’s products mainly include: Solar Cell, Solar Module, PV System.
SC sources its materials 80% from domestic market, and 20% from overseas
markets, mainly
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. 2,400
staff at present.
SC owns an area as its operating office & factory of approx. 163,642
sq. meters at the heading address.
RELATED COMPANY
JA Solar Holdings Co., Ltd.
Yangzhou JA Estate Co., Ltd.
Shanghai JA Solar Technology Co., Ltd.
Shanghai JA Solar PV Technology Co., Ltd.
SC is known to
have a subsidiary at present,
Yangzhou JA Solar R&D 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:
Bank of China
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
681,710 |
648,990 |
|
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Notes receivable |
239,280 |
56,830 |
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Accounts receivable |
2,328,830 |
2,806,670 |
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Advances to suppliers |
2,004,430 |
1,529,890 |
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Other receivable |
11,390 |
11,720 |
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Inventory |
126,440 |
133,260 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
950 |
780 |
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------------------ |
------------------ |
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Current assets |
5,393,030 |
5,188,140 |
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Long-term investment |
124,890 |
536,880 |
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Fixed assets |
1,514,950 |
1,398,250 |
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Construction in progress |
171,380 |
102,390 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
129,010 |
124,650 |
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------------------ |
------------------ |
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Total assets |
7,333,260 |
7,350,310 |
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============= |
============= |
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Short-term loans |
89,990 |
455,420 |
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Accounts payable |
2,834,790 |
2,955,370 |
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Taxes payable |
-158,210 |
-92,680 |
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Advances from clients |
28,360 |
164,400 |
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Other payable |
96,530 |
85,470 |
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Other current liabilities |
630,460 |
649,240 |
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------------------ |
------------------ |
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Current liabilities |
3,521,920 |
4,217,220 |
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Non-current liabilities |
1,036,720 |
562,050 |
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------------------ |
------------------ |
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Total liabilities |
4,558,640 |
4,779,270 |
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Equities |
2,774,620 |
2,571,040 |
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------------------ |
------------------ |
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Total liabilities & equities |
7,333,260 |
7,350,310 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
6,856,900 |
3,256,160 |
|
Cost of sales |
6,492,350 |
3,204,860 |
|
Sales expense |
8,620 |
15,500 |
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Management expense |
74,000 |
116,480 |
|
Finance expense |
119,770 |
107,880 |
|
Profit before tax |
178,390 |
-182,910 |
|
Less: profit tax |
37,090 |
0 |
|
141,300 |
-182,910 |
Important Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
1.53 |
1.23 |
|
*Quick ratio |
1.50 |
1.20 |
|
*Liabilities to assets |
0.62 |
0.65 |
|
*Net profit margin (%) |
2.06 |
-5.62 |
|
*Return on total assets (%) |
1.93 |
-2.49 |
|
*Inventory / Revenue ×365 |
7 days |
15 days |
|
*Accounts receivable/ Revenue ×365 |
124 days |
315 days |
|
* Revenue/Total assets |
0.94 |
0.44 |
|
* Cost of sales / Revenue |
0.95 |
0.98 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
The revenue of SC appears fairly good, but it was decreasing in 2012.
SC’s net profit margin is average in 2011 and fair in 2012.
SC’s return on total assets is average in 2011 and fair in 2012.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appears large.
SC’s short-term loans are in an average 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 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 accounts receivable may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.63 |
|
|
1 |
Rs.99.94 |
|
Euro |
1 |
Rs.85.14 |
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.