MIRA
INFORM REPORT
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Report Date : |
26.05.2014 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU GREEN POWER PV CO., LTD. |
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Registered Office : |
No. 1 Longmen Road, Wujin Hi-Tech Industry Development Zone Changzhou,
Jiangsu Province 213161 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
03.07.2008 |
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Com. Reg. No.: |
320483000226727 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Researching and manufacturing solar cells, modules and photovoltaic
products, selling its owned products; technical consulting, technology services,
installation and commissioning of solar photovoltaic products. |
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No. of Employees |
1,061 |
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 : |
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, 2014
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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, 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
JIANGSU GREEN
POWER PV CO., LTD.
NO. 1 LONGMEN
ROAD, WUJIN HI-TECH INDUSTRY DEVELOPMENT ZONE CHANGZHOU, JIANGSU PROVINCE
213161 PR CHINA
TEL: 86 (0)
519-86520808/89850209
FAX: 86 (0)
519-86523088
EXECUTIVE SUMMARY
Date of Registration : JUly 3, 2008
REGISTRATION NO. : 320483000226727
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE :
zhang wenjun (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 170,000,000
staff :
1,061
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 511,440,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 186,230,000 (AS OF DEC. 31, 2013)
WEBSITE : www.gppv.cc
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24 = 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.: 320483000226727
on July 3, 2008.
SC’s Organization Code Certificate No.:
67761724-8
SC’s Tax No.: 320400677617248
SC’s registered capital: CNY 170,000,000
SC’s paid-in capital: CNY 170,000,000
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 |
|
Macau New Solar Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Zhang Wenjun |
|
Director |
Zhang Minghui |
|
Zhang Zhenyu |
|
|
Supervisor |
Wang Weizhen王 |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Macau New Solar Co., Ltd. 100
==============
Address: Alameda Dr.Carlos D'Assumpcao No.263, Edificio China Civil
Plaza, 6 andar M & N, Macao
Tel: +86 853 28703338
Fax: +86 853 28703336
MANAGEMENT
Zhang Wenjun, Legal Representative, Chairman and General
Manager
--------------------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
From 2008 to present, working in SC as legal representative, chairman
and general manager, also working in Jiangsu New Solar Technology Group Co.,
Ltd. and Changzhou New Solar New Materials Technology Co., Ltd. as legal
representative
Director
----------
Zhang Minghui
Zhang Zhenyu
Supervisor
--------------
Wang Weizhen
BUSINESS
OPERATION
SC’s registered business scope includes researching and
manufacturing solar cells, modules and photovoltaic products, selling its owned
products; technical consulting, technology services, installation and
commissioning of solar photovoltaic products.
SC is mainly engaged in manufacturing and selling solar cells, modules
and photovoltaic products.
Brand: GPPV
SC’s products mainly include: mono-crystalline silicon solar modules,
poly-crystalline silicon solar modules
SC sources its materials 30% from domestic market, and 70% from overseas market. SC sells 10% of its products in domestic market, and 90% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Greentech Renewable Solutions
Staff &
Office:
--------------------------
SC is known to have approx. 1,061
staff at present.
SC owns an area as its operating office & factory of approx. 34,000
sq. meters at the heading address.
RELATED
COMPANY
Shinho (Changzhou) Petrochemical Co., Ltd.
Changzhou Dohow Chemical Co., Ltd.
Changzhou New Solar New Materials 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
Basic Bank:
Jiangnan Rural Commercial Bank Wujin Sub-branch
AC#: 8603204210101201000080928
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Cash |
78,170 |
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Notes receivable |
0 |
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Accounts receivable |
104,580 |
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Other receivable |
2,940 |
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Inventory |
174,510 |
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Non-current assets within one year |
0 |
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Other current assets |
72,930 |
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------------------ |
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Current assets |
433,130 |
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Fixed assets |
462,420 |
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Construction in progress |
393,650 |
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Deferred income tax assets |
0 |
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Other non-current assets |
20,020 |
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------------------ |
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Total assets |
1,309,220 |
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============= |
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Short-term loans |
0 |
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Notes payable |
140,000 |
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Accounts payable |
47,460 |
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Advances from clients |
6,430 |
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Other payable |
756,920 |
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Other current liabilities |
-43,820 |
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------------------ |
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Current liabilities |
906,990 |
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Non-current liabilities |
216,000 |
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------------------ |
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Total liabilities |
1,122,990 |
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Equities |
186,230 |
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------------------ |
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Total liabilities & equities |
1,309,220 |
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|
============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
511,440 |
|
Cost of sales |
500,260 |
|
Sales expense |
7,670 |
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Management expense |
25,420 |
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Finance expense |
7,410 |
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Profit before tax |
-26,650 |
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Less: profit tax |
0 |
|
Profits |
-26,650 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
|
*Current ratio |
0.48 |
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*Quick ratio |
0.29 |
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*Liabilities to assets |
0.86 |
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*Net profit margin (%) |
-5.21 |
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*Return on total assets (%) |
-2.04 |
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*Inventory / Revenue ×365 |
125 days |
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*Accounts receivable/ Revenue ×365 |
75 days |
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*Revenue/Total assets |
0.39 |
|
*Cost of sales / Revenue |
0.98 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
The revenue 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 sales is fairly high, comparing with its revenue.
LIQUIDITY: FAIR
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 large.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loans.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is fairly high.
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.58.48 |
|
UK Pound |
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.79.80 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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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 |
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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 |
|
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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.