MIRA
INFORM REPORT
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Report Date : |
22.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
WUXI SUNTECH
POWER CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
22.01.2001 |
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Com. Reg. No.: |
320000400001498 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in researching, developing and manufacturing solar
batteries and power generation system; providing after-sale technical
service; wholesale and commission agency business, import and export business
of above products and raw materials and components of solar cells and
modules; providing design, installation and maintenance services for solar power production system;
providing testing services for solar Power Products and PV module components;
construction of solar power plants; technology development, technology
transfer, technology consulting and technology services of solar photovoltaic
field. |
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No of Employees : |
2,000 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
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 & address
WUXI SUNTECH POWER CO., LTD.
NO. 12 XINHUA
ROAD, NEW DISTRICT, WUXI
JIANGSU
PROVINCE 214028 PR CHINA
TEL: 86 (0)
510-85318888/85317890
FAX: 86 (0)
510-85343049/85317372
EXECUTIVE SUMMARY
Date of Registration : JANUARY 22, 2001
REGISTRATION NO. : 320000400001498
LEGAL FORM : WHOLLY
FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
SHI
JIANMIN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : usd
525,000,000
staff :
2,000
BUSINESS CATEGORY :
manufacturing & trading
Revenue :
CNY 2,552,671,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY -4,381,688,000
(AS OF DEC. 31, 2013)
WEBSITE : www.suntech-power.com
E-MAIL :
sales@suntech-power.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : poor
OPERATIONAL TREND : fair
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.14 = 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.:
320000400001498 on January 22, 2001.
SC’s Organization Code Certificate No.:
72655423-X
SC’s Tax No.: 32020072655423X
SC’s registered capital: USD 525,000,000
SC’s paid-in capital: USD 525,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2006 |
Registered Capital |
USD 8,000,000 |
USD 21,000,000 |
|
2008-9 |
Registered Capital |
USD 21,000,000 |
USD 53,800,000 |
|
2008-11 |
Registered Capital |
USD 53,800,000 |
USD 70,200,000 |
|
Registration No. |
004890 |
320000400001498 |
|
|
2009-12-25 |
Registered Capital |
USD 70,200,000 |
usd 299,200,000 |
|
2014-3-11 |
Legal Representative |
Shi Zhengrong |
Shi Jianmin |
|
Shareholder (s) |
Olar Energy Power System Co., Ltd. (B.V.I.) 100% |
Shunfeng Photovoltaic Investment ( 100% |
|
|
2014-6-11 |
Registered Capital |
usd 299,200,000 |
USD 525,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shunfeng Photovoltaic Investment (China) Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Shi Jianmin |
|
General Manager |
Luo Xin |
|
Director |
Wang Xiangfu |
|
Mo Jicai |
|
|
Xiong Haibo |
|
|
He Shuangquan |
|
|
Long Guozhu |
|
|
Supervisor |
Xu Yingfeng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Shunfeng Photovoltaic Investment (China) Co., Ltd. 100
=========================
Date of Registration: May 13, 2013
Registration No.: 320000400005739
Legal Form: Wholly Foreign-Owned
Enterprise
Chief Executive: Shi Jianmin
Registered Capital: Usd 525,000,000
MANAGEMENT
Shi Jianmin, Legal
Representative and Chairman
----------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
From March of 2014 to present, working in SC as legal representative and
chairman, also working in Shunfeng Photovoltaic Investment (China) Co., Ltd. as
legal representative
Luo Xin, General
Manager
----------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as general manager
Director
-----------
Wang Xiangfu
Mo Jicai
Xiong Haibo
He Shuangquan
Long Guozhu
Supervisor:
---------------
Xu Yingfeng
BUSINESS OPERATION
SC’s registered business scopes include researching, developing and
manufacturing solar batteries and power generation system; providing after-sale
technical service; wholesale and commission agency business, import and export
business of above products and raw materials and components of solar cells and
modules; providing design, installation and maintenance services for solar power production system; providing
testing services for solar Power Products and PV module components;
construction of solar power plants; technology development, technology
transfer, technology consulting and technology services of solar photovoltaic
field.
SC is mainly engaged in manufacturing and selling solar batteries and
power generation system.
SC’s products mainly include: power battery and generate electricity
system.
SC sources its materials 30% from domestic market, and 70% from overseas
market, mainly Australia. SC sells 5% of its products in domestic market, and
95% to overseas market, mainly Europe and Australia.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Norseland Scan Wafer
6 N Sillcon Inc.
Suntech America Inc.
Azure Power (Haryana) Private Limited
*Major Suppliers:
==============
Germany IBC Solar
Germany Conergy
Staff &
Office:
--------------------------
SC is known to have approx. 2,000
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
Suntech Europe
Suntech Power International Ltd.
Schwertstrasse 1, CH-8200 Schaffhausen, Switzerland
Tel: +41 52 632 00 90
Fax: +41 52 632 00 99
Email: sales@suntecheurope.com
Suntech America
188 The Embarcadero, 8th floor, San Francisco, CA 94105
Tel: +1 (866) 966-6555 toll free
Tel: +1 (415) 882-9922
Fax: +1 (415) 882-9923
Email: sales@suntechamerica.com
Suntech Australia
Unit 7, No.24-28 Skarratt Street North, Silverwater NSW 2128, Australia
Tel: +61 (2) 9648 5600
Fax: +61 (2) 9648 5605
Email: sales@suntech-power.com.au
Suntech Germany
Landsberger Strasse 155, 80687 Munich
Tel: + 49 89 579 59 195
Suntech Spain
Avenida Ramon y Cajal 36, 28002 Madrid SPAIN
Tel: +34 91 510 3682
Fax: +34 91 510 3681
Suntech Korea
Room 818-819, Hanshin Inter Velly 24 East Building, 707-34 Yeoksam dong,
Gangnam-gu, South Korea 135-080
Tel: +82-2-2183-2822
Fax: +82-2-2183-2825
Suntech Japan
MSK
Tel: +81-3 3342 3838
Fax: +81-3 3342 6534
SC is also known to have the following subsidiaries and branch:
Luoyang Suntech Power Co., Ltd.
Shenzhen Suntech Power Co., Ltd.
Sichuan Suntech Power Co., Ltd.
Suntech Power Co., Ltd. Xinhua Road Branch
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’s suppliers declined to make any
comments.
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:
Wuxi City Commercial Bank New District Sub-branch
AC#: 807891533796
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
1,398,095 |
669,540 |
|
|
Short-term
investment |
121,910 |
111,391 |
|
Notes receivable |
142,000 |
10,950 |
|
Accounts receivable |
3,976,821 |
681,626 |
|
Advances to suppliers |
2,557,387 |
208,159 |
|
Other receivable |
974,040 |
116,663 |
|
Inventory |
619,920 |
575,798 |
|
Deferred expenses |
18,336 |
7,921 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
9,808,509 |
2,382,048 |
|
Fixed assets |
2,724,419 |
2,298,951 |
|
Construction in progress |
102,625 |
48,673 |
|
Intangible assets |
29,620 |
21,333 |
|
Long-term prepaid expenses |
0 |
0 |
|
Long-term investment |
636,996 |
992,208 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
346,410 |
52,054 |
|
|
------------------ |
------------------ |
|
Total assets |
13,648,579 |
5,795,267 |
|
|
============= |
============= |
|
Short-term loans |
6,544,679 |
3,880,732 |
|
Trading financial liabilities |
0 |
0 |
|
Notes payable |
652,138 |
0 |
|
Accounts payable |
1,845,745 |
1,042,575 |
|
Wages payable |
30,912 |
31,948 |
|
Taxes payable |
-27,025 |
-1,301 |
|
Advances from clients |
213,504 |
243,928 |
|
Interest payable |
0 |
0 |
|
Other payable |
689,743 |
3,822,095 |
|
Accrued expenses |
115,115 |
32,943 |
|
Other current liabilities |
889,904 |
656,053 |
|
|
------------------ |
------------------ |
|
Current liabilities |
10,954,715 |
9,708,973 |
|
Non-current liabilities |
995,553 |
467,982 |
|
|
------------------ |
------------------ |
|
Total liabilities |
11,950,268 |
10,176,955 |
|
Equities |
1,698,311 |
-4,381,688 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
13,648,579 |
5,795,267 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
2,552,671 |
|
Cost of sales |
2,616,519 |
|
Taxes and surcharges |
83,605 |
|
Sales expense |
93,050 |
|
Management expense |
4,721,715 |
|
Finance expense |
7,552 |
|
Non-business income |
1,695 |
|
Non-business expense |
489,894 |
|
Profit before tax |
-6,157,658 |
|
Less: profit tax |
0 |
|
-6,157,658 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
*Current ratio |
0.90 |
0.25 |
|
*Quick ratio |
0.84 |
0.19 |
|
*Liabilities to assets |
0.88 |
1.76 |
|
*Net profit margin (%) |
-- |
-241.22 |
|
*Return on total assets (%) |
-- |
-106.25 |
|
*Inventory / Revenue ×365 |
-- |
83 days |
|
*Accounts receivable/ Revenue ×365 |
-- |
98 days |
|
* Revenue/Total assets |
-- |
0.44 |
|
* Cost of sales / Revenue |
-- |
1.03 |
FINANCIAL COMMENTS
PROFITABILITY:
POOR
The revenue of SC appears good in its line.
SC’s net profit margin is poor.
SC’s return on total assets is poor.
SC’s cost of goods sold is high, comparing with its revenue.
LIQUIDITY: POOR
The current ratio of SC is maintained in a poor level in 2013.
SC’s quick ratio is maintained in a poor level in 2013.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appears average.
The short-term loans of SC appear large.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: POOR
The debt ratio of SC is high.
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered large-sized in its line with poor financial conditions.
The large amount of short-term loans may be a threat to SC’s financial
condition. But taking into consideration of SC’s good background
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.81 |
|
|
1 |
Rs.100.06 |
|
Euro |
1 |
Rs.78.47 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
TPT |
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.