MIRA INFORM REPORT
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Report No. : |
302887 |
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Report Date : |
15.01.2015 |
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) : |
31.12.2013 |
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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 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. |
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No. of Employees : |
850 |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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
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 : bai yun (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
usd 196,140,000
staff : 850
BUSINESS CATEGORY :
MANUFACTURING & TRADING
Revenue : CNY 942,680,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 306,870,000 (AS OF DEC. 31, 2013)
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 6.20 = 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 Tax No.:
310112795660562
SC’s registered
capital: usd 196,140,000
SC’s paid-in
capital: usd 196,140,000
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Representative |
Shi Zhengrong |
Bai Yun |
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 and Chairman |
Bai Yun |
|
Director |
Li Weijie |
|
Limin Xie |
|
|
Gee Xiaohua |
|
|
Jiang Hongkua |
|
|
Zhao Zhenhua |
|
|
Xiao Jun |
|
|
Supervisor |
Wang Yao |
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
Bai Yun, Legal Representative and Chairman
--------------------------------------------------------------------
Gender: M
Working experience (s):
At present, working in SC as legal representative and chairman
Director
----------
Li Weijie
Limin Xie
Gee Xiaohua
Jiang Hongku
Zhao Zhenhua
Xiao Jun
Supervisor
--------------
Wang Yao
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. 850 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.
According to the website: 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
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:
Shanghai Pudong Development Bank Jing’an Sub-branch
AC#:
076457-98210155300000766
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
|
33,250 |
|
|
Notes receivable |
21,390 |
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Accounts receivable |
70,920 |
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Advances to suppliers |
2,520 |
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Other receivable |
610 |
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Inventory |
31,380 |
|
Prepaid expenses |
510 |
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Other current assets |
0 |
|
|
------------------ |
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Current assets |
160,580 |
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Fixed assets |
1,392,390 |
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Construction in progress |
10,420 |
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Intangible assets |
400 |
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Long-term prepaid expenses |
10,170 |
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Deferred income tax assets |
0 |
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Other non-current assets |
0 |
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------------------ |
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Total assets |
1,573,960 |
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|
============= |
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Short-term loans |
254,470 |
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Notes payable |
0 |
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Accounts payable |
131,420 |
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Wages payable |
2,480 |
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Taxes payable |
52,950 |
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Accrued expense |
2,230 |
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Interest payable |
21,790 |
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Advances from clients |
4,650 |
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Other payable |
28,710 |
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Other current liabilities |
196,090 |
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------------------ |
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Current liabilities |
694,790 |
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Non-current liabilities |
572,300 |
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------------------ |
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Total liabilities |
1,267,090 |
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Equities |
306,870 |
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------------------ |
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Total liabilities & equities |
1,573,960 |
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============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
|
Revenue |
942,680 |
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Cost of sales |
874,100 |
|
Taxes and surcharges |
-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 |
|
-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 / Revenue ×365 |
13 days |
|
*Accounts receivable/ Revenue ×365 |
28 days |
|
*Revenue/Total assets |
0.60 |
|
*Cost of sales / Revenue |
0.93 |
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: 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 is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
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: 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.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial conditions. The large amount of short-term loans could be a threat to SC’s financial condition
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.15 |
|
|
1 |
Rs.94.24 |
|
Euro |
1 |
Rs.73.30 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIS |
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 |
|
|
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 |
-- |
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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.