MIRA
INFORM REPORT
|
Report Date : |
26.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUNTECH POWER CO., LTD. |
|
|
|
|
Registered Office : |
No. 1888, Liyue Road, Pujiang Town, Minhang District, Shanghai, 201114 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
28.11.2006 |
|
|
|
|
Com. Reg. No.: |
310000400491974 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
Subject is engaged in the researching, developing, manufacturing and
selling solar cells, modules, and providing after-sales service. |
|
|
|
|
No. of Employees : |
850 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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 2013 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
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (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. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. However, China has made only
marginal progress toward these rebalancing goals. The new government of
President XI Jinping has signaled a greater willingness to undertake reforms
that focus on China's long-term economic health, including giving the market a
more decisive role in allocating resources.
|
Source
: CIA |
Company name and address
SUNTECH POWER CO., LTD.
NO. 1888, LIYUE ROAD, PUJIANG TOWN, MINHANG DISTRICT,
SHANGHAI, 201114 PR CHINA
TEL: 86 (0) 21-24163888-3745
FAX: 86 (0)
21-24163838
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 28, 2006
REGISTRATION NO. :
310000400491974
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. ZHENGRONG SHI (CHAIRMAN)
STAFF STRENGTH : 850
REGISTERED CAPITAL : USD 196,140,000
BUSINESS LINE :
R&D, MANUFACTURING, TRADING, SERVICE
TURNOVER :
CNY 942,680,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 306,870,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2361 =USD 1
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
– China Yuan Ren Min Bi
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 Nov. 28, 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 researching,
designing, developing and manufacturing solar cells, materials and power
generation systems; selling self-produced products, and providing related
technical consulting and technical services; importing and exporting the above
related goods and technology (if the trade of the goods is governed by the
quota or special rule, relevant regulations shall be followed) (with permit if
needed).
SC is mainly engaged in researching, developing, manufacturing and selling
solar cells, modules, and providing after-sales service.
Mr. Zhengrong Shi has been legal representative and chairman of SC since
2006.
SC is known to have approx. 850 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Shanghai. Our
checks reveal that SC owns the total premise, but the gross area of the premise
is unspecific.
SC is not known to host website of its own at present.
E-mail: yxie@suntech-power.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-08-08 |
Registered capital |
USD 33,330,000 |
USD 55,560,000 |
|
2008-08-08 |
Shareholder |
Power Solar System Co., Ltd. (B.V.I.) |
The present one |
|
2009-11-20 |
Registered capital |
USD 55,560,000 |
USD 87,560,000 |
|
2010-04-22 |
Registered capital |
USD 87,560,000 |
The present amount |
Tax Registration Certificate No.: 310112795660562
Organization code: 795660562
See below for SC as executive party (defendant).
|
Executed Party |
SC |
|
Court |
Shanghai City Pudong New District People's Court |
|
Date of Case |
Apr. 16, 2014 |
|
Case Number |
(2014) 07860 |
|
Claim Amount |
RMB 239,586,960 |
|
Case Status |
Completed |
|
Executed Party |
SC |
|
Court |
Shanghai City Minhang District People's Court |
|
Date of Case |
Oct. 3, 2013 |
|
Case Number |
(2013) 07370 |
|
Claim Amount |
RMB 302,945.12 |
|
Case Status |
Completed |
|
Executed Party |
SC |
|
Court |
Shanghai City Minhang District People's Court |
|
Date of Case |
Sep. 29, 2013 |
|
Case Number |
(2013) 07317 |
|
Claim Amount |
RMB 98,073,248 |
|
Case Status |
Completed |
|
Executed Party |
SC |
|
Court |
Shanghai City Minhang District People's Court |
|
Date of Case |
Sep. 5, 2013 |
|
Case Number |
(2013) 06745 |
|
Claim Amount |
RMB 711,644 |
|
Case Status |
Completed |
|
Executed Party |
SC |
|
Court |
Shanghai City Minhang District People's Court |
|
Date of Case |
Aug. 13, 2013 |
|
Case Number |
(2013) 06241 |
|
Claim Amount |
RMB 655,255.2 |
|
Case Status |
Completed |
|
Executed Party |
SC |
|
Court |
Shanghai City Minhang District People's Court |
|
Date of Case |
Aug. 13, 2013 |
|
Case Number |
(2013) 06263 |
|
Claim Amount |
RMB 102,000 |
|
Case Status |
Completed |
Etc.
Remark: Due to the lack of information, we are unable to provide the cause of action,
judgment or other information.
MAIN SHAREHOLDERS:
Name % of
shareholdings
Suntech Power Investment Pte. Ltd. (Singapore) 100
Legal representative and Chairman:
Mr. Zhengrong Shi, Australian, Passport no.: E3009028, born in 1963, with doctor’s
degree. 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 Suntech Energy Engineering Co., Ltd. as legal
representative.
General Manager:
Mr. He Shuangquan is currently responsible for the daily management of
SC.
Working
Experience(s):
At present Working in
SC as general manager
Directors
………….
Jiang Hongkuan
David King
Long Guozhu
Luo Xin
Limin Xie
Supervisor
…………….
Wang Yao
SC is mainly engaged in researching, developing, manufacturing and
selling solar cells, modules, and providing after-sales service.
SC’s products mainly include: solar cells, modules
SC sources its materials 98% from domestic market, and 2% from overseas
market. SC sells 90% of its products in domestic market, and 10% 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.
Note: SC’s management declined to release its main suppliers and
clients.
Wuxi Suntech Power Co., Ltd.
=========================
Incorporation date:
Registration no.: 320000400001498
Registered capital: USD 525,000,000
Legal rep.: Shi Jianmin
Legal form: Wholly foreign-owned enterprise
Web: http://www.suntech-power.com
E-mail: sales@suntech-power.com
Tel: +86 (510) 8531 8000
Fax: +86 (510) 8534 4214-0006
Luoyang Suntech Power Co., Ltd.
========================
Incorporation date:
Registration no.: 410300400005720
Registered capital: CNY 320,000,000
Legal rep.: Shi Jianmin
Tel: 86 (0) 379-65191000
Suntech Energy Engineering Co., Ltd.
===========================
Incorporation date:
Registration no.: 310000400529117
Registered capital: USD 26,000,000
Legal rep.: Zhengrong Shi
Legal form: Wholly foreign-owned enterprise
Tel: 86 (0) 21-24163888
Fax: 86 (0) 21-24183838
Etc.
According to the website: http://www.suntech-power.com
Suntech Benelux
Heldensedijk 15768 RK Meijel Netherlands
Tel: +31 (0) 653 893920
Fax: +31 (0) 774 661147
E-mail: sales.eu@suntech-power.com
Suntech Greece
44, Amalias Avenue Athens 10558 Greece
Tel: +30 (0) 210 32 24 694-5
Fax: +30 (0) 210 3229117
E-mail: sales.eu@suntech-power.com
Suntech UAE
Post Office Box 72405 Dubai, United Arab Emirates
Tel: +971 4 328 9766
Fax: +971 4 328 9767
Suntech Australia
Suite 1101, level 11 201 Miller Street North Sydney NSW 2060, Australia
Tel: +61 2 8188 2450
Fax: +61 2 8188 2440
E-mail: sales@suntech-power.com.au
Suntech Japan
Tel: +81 3 3342 3838
Fax: +81 3 3342 6534
Suntech Switzerland
Maggio 1, Lugano, 6900, Switzerland
Tel: +41 (0)91 2601559
Fax: +41 (0)91 2601501
E-mail: sales.eu@suntech-power.com
Suntech UK
31-35 Kirby Street, Farringdon, London, EC1N 8TE
E-mail: sales.eu@suntech-power.com
Suntech Korea
POSCO Center Building, West Tower 11th Floor 892, Daechi4-dong,
Gangnam-gu Seoul, 135-777, Korea
Tel: +82 2 559 0640
Fax: +82 2 559 0701
Mobile: +82 10 5309 2755
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.
Shanghai Pudong Development Bank Jing’an Sub-branch
AC#：076457-98210155300000766
Relationship: Normal
Balance
Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
|
Cash & bank |
33,250 |
|
Notes receivable |
21,390 |
|
Inventory |
31,380 |
|
Accounts receivable |
70,920 |
|
Advances to suppliers |
2,520 |
|
Prepaid expenses |
510 |
|
Other receivables |
610 |
|
Other current assets |
0 |
|
|
------------------ |
|
Current assets |
160,580 |
|
Long-term investments |
0 |
|
Fixed assets net value |
1,392,390 |
|
Projects under construction |
10,420 |
|
Long-term deferred expenses |
10,170 |
|
Intangible assets |
400 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
1,573,960 |
|
|
============= |
|
Short loans |
254,470 |
|
Notes payable |
0 |
|
Accounts payable |
131,420 |
|
Advances from customers |
4,650 |
|
Employee pay payable |
2,480 |
|
Taxes payable |
52,950 |
|
Accrued expense |
2,230 |
|
Interest payable |
21,790 |
|
Other accounts payable |
28,710 |
|
Non-current liabilities due within one year |
196,090 |
|
Other current liabilities |
0 |
|
|
----------------- |
|
Current liabilities |
694,790 |
|
Long term liabilities |
572,300 |
|
|
------------------ |
|
Total liabilities |
1,267,090 |
|
Shareholders equities |
306,870 |
|
|
------------------ |
|
Total liabilities & equities |
1,573,960 |
|
|
============= |
Income
Statement
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
|
Turnover |
942,680 |
|
Cost of goods sold |
874,100 |
|
Taxes and additional of main operation |
0 |
|
Income from other operation |
-50 |
|
Sales expense |
0 |
|
Management expense |
100,980 |
|
Finance expense |
42,510 |
|
Non-operating income |
760 |
|
Non-operating expense |
-19,590 |
|
Profit before tax |
-54,610 |
|
Less: profit tax |
0 |
|
Net profit |
-54,610 |
Important
Ratios
|
|
As
of Dec. 31, 2013 |
|
*Current ratio |
0.23 |
|
*Quick ratio |
0.19 |
|
*Liabilities to assets |
0.81 |
|
*Net profit margin (%) |
-5.79 |
|
*Return on total assets (%) |
-3.47 |
|
*Inventory /Turnover ×365 |
13 days |
|
*Accounts receivable/Turnover ×365 |
28 days |
|
*Turnover/Total assets |
0.60 |
|
* Cost of goods sold/Turnover |
0.93 |
PROFITABILITY:
FAIR
·
The turnover of SC appears fairly good in its line.
·
SC’s net profit margin is fair.
·
SC’s return on total assets is fair.
·
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: POOR
·
The current ratio of SC is maintained in a poor
level.
·
SC’s quick ratio is maintained in a poor level.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears average.
·
The short-term loan of SC appears large in 2013.
·
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is fairly high.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.28 |
|
|
1 |
Rs.102.28 |
|
Euro |
1 |
Rs.82.05 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NNA |
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.