MIRA INFORM REPORT

 

 

Report No. :

343148

Report Date :

05.10.2015

 

IDENTIFICATION DETAILS

 

Name :

CANADIAN SOLAR INTERNATIONAL LTD.

 

 

Registered Office :

Unit 1520, 15/F., Tower 2, Grand Century Place, 193 Prince Edward Road West, Mongkok, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

25.03.2011

 

 

Com. Reg. No.:

58139273

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer and Exporter of all kinds of Solar Energy Products.

 

 

No. of Employees :

8 (Group Employees - 8,673 Year ended 31-12-2014)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

HONGKONG - ECONOMIC OVERVIEW

 

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 12.5% of total system deposits in Hong Kong by the end of 2014. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's total trade by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4.4% in 2014. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 

Company Name and address

 

CANADIAN SOLAR INTERNATIONAL LTD.

 

ADDRESS:                   Unit 1520, 15/F., Tower 2, Grand Century Place, 193 Prince Edward Road West, Mongkok, Kowloon, Hong Kong.

 

PHONE:                        852-2528 1286

 

FAX:                             852-2528 1622

 

E-MAIL:                        Joyce.li@canadiansolar.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Michael George Potter

 

 

SUMMARY

 

Incorporated on:            25th March, 2011.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     US$1,430,333.00

 

Business Category:       Importer and Exporter.

 

Group Turnover:            US$2,960,626,610  (Year ended 31-12-2014)

 

Employees:                  8.

 

Group Employees:        8,673.  (Year ended 31-12-2014)

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

Unit 1520, 15/F., Tower 2, Grand Century Place, 193 Prince Edward Road West, Mongkok, Kowloon, Hong Kong.

 

Holding Company:-

Canadian Solar Inc., Canada.

 

Associated Companies:-

Canadian Solar (Australia) Pty. Ltd., Australia.

Canadian Solar (Thailand) Ltd., Thailand.

Canadian Solar (USA) Inc., US.

Canadian Solar Brasil Servicos De Consultoria EM Energia Solar Ltda., Brazil.

Canadian Solar Construction (USA) LLC, US.

Canadian Solar EMEA GmbH, Germany.

Canadian Solar Japan K.K., Japan.

Canadian Solar Manufacturing (Changshu) Inc., China.

Canadian Solar Manufacturing (Luoyang) Inc., China.

Canadian Solar Manufacturing (Suzhou) Inc., China.

Canadian Solar Middle East Ltd.,UAE.

Canadian Solar O&M (Ontario) Inc., Canada.

Canadian Solar Solutions Inc., Canada.

Canadian Solar South Africa Pty. Ltd., Brazil.

Canadian Solar South East Asia Pte. Ltd., Singapore.

Canadian Solar Trading (Changshu) Inc., China.

Canadian Solartronics (Suzhou) Co. Ltd., China.

Changshu Tegu New Materials Technology Co. Ltd., China.

Changshu Tlink Co. Ltd., China.

CSI Cells Co. Ltd., China.

CSI Project Consulting GmbH, Germany.

CSI Solar Manufacture Inc., China.

CSI Solar Power (China) Inc., China.

CSI Solar Technologies Inc., China.

CSI Solartronics (Changshu) Co. Ltd., China.

CSI-Cenergy Holdings LLC., US.

CSI-GCL (Yancheng) Solar Manufacturing Co. Ltd., China.

PT. Canadian Solar Indonesia, Indonesia.

Recurrent Energy LLC, US.

Suzhou Sanysolar Materials Technology Co. Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

58139273

 

 

COMPANY FILE NUMBER

 

1579177

 

 

MANAGEMENT

 

Managing Director:                    Mr. Michael George Potter

Contact Person:                        Ms. Joyce Li

 

 

ISSUED SHARE CAPITAL

 

US$1,430,333.00

 

 

SHAREHOLDERS

(As per registry dated 25-03-2015)

 

Name

 

No. of shares

Canadian Solar Inc.

545 Speedvale Avenue West, Guelph, Ontario, N1K 1E6, Canada.

 

1,286,033

CSI Solar Power (China) Inc.

199 Lushan Road, Suzhou New District Jiangsu, China.

 

72,150

Canadian Solar Manufacturing (Changshu) Inc.

Chang Sheng Road, Yang Yuan Xin Zhuang Town, Changshu, Jiangsu, China.

 

72,150

 

 

––––––––

 

Total:

1,430,333

=======

 

 

DIRECTORS

(As per registry dated 25-03-2015)

 

Name

(Nationality)

 

Address

Michael George POTTER

4492 Sandalwood Drive, Pleasanton, CA 94588, U.S.

 

QU Xiaohua

199 Lushan Road, SND, Suzhou, Jiangsu Province, China.

 

 

SECRETARY

(As per registry dated 25-03-2015)

 

Name

Address

Co. No.

Hong Kong Corporation Secretaries Ltd.

Unit 1001, 10/F., Infinitus Plaza, 199 Des Voeux Road Central, Hong Kong.

1192442

 

 

HISTORY

 

The subject was incorporated on 25th March, 2011 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject’s registered address was located at Room 1802, 18/F., Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong. moved to the present address in January, 2014.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           All kinds of solar energy products

 

Employees:                  8.

 

Group Employees:        8,673.  (Year ended 31-12-2014)

 

Commodities Imported: China, Europe, etc.

 

Markets:                        China, other Asian countries, Europe, North America, etc.

 

Group Turnover:            US$1,495,509,056  (Year ended 31-12-2010)

US$1,898,922,106  (Year ended 31-12-2011)

US$1,294,829,413  (Year ended 31-12-2012)

US$1,654,356,064  (Year ended 31-12-2013)

US$2,960,626,610  (Year ended 31-12-2014)

 

Terms/Sales:                 As per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     US$1,430,333.00

 

Indebtedness:               US$45,000,000 (Total amount outstanding on all mortgages and charges as per last  Annual Return dated 25-03-2015)


 

Group Net Income (Loss): US$  50,828,396   (Year ended 31-12-2010)

(US$  90,903,374)  (Year ended 31-12-2011)

(US$195,155,097)  (Year ended 31-12-2012)

US$  45,564,936   (Year ended 31-12-2013)

US$243,886,084   (Year ended 31-12-2014)

 

Profit or Loss:               Group made a good profit in 2014.

 

Condition:                     Business is active.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Very Good.

 

 

GENERAL

 

Canadian Solar International Ltd. is a subsidiary of Canadian Solar Inc. [including associated companies are referred to Group], holding 89.91%, which is a Canada-based and registered firm.  The minor shareholders of the subject are CSI Solar Power (China) Inc. and Canadian Solar Manufacturing (Changshu) Inc.  Both are China registered companies and each is holding 5.04%.

 

The Group designs, develops, and manufactures solar wafers, cells and solar module products that convert sunlight into electricity for a variety of uses.  It was incorporated in Canada and conduct most of its manufacturing operations in China.  Its products include a range of standard solar modules built to general specifications for use in a wide range of residential, commercial and industrial solar power generation systems.  It also designs and produces specialty solar modules and products based on its customers’ requirements.  Specialty solar modules and products consist of customized solar modules that its customers incorporate into their own products, such as solar-powered bus stop lighting, and complete specialty products, such as portable solar home systems and solar-powered car battery chargers.  It also sells its products under its “CanadianSolar” brand name and to OEM customers under their brand names.  It also sells solar system kits and implement solar power development projects.

 

Its product lines range from modules of medium power, to high efficiency, high-power output mono-crystalline modules, as well as a range of specialty products.  It currently sells its products to a diverse customer base in various markets worldwide, including Germany, Spain, Italy, France, the Czech Republic, the United States, Canada, China, Japan and India, among others.  It sells its standard solar modules to distributors and system integrators, as well as to solar projects.

 

The Group has had a main factory in Changshu known as CSI Changshu Manufacturing.  CSI Changshu Manufacturing rents approximately 31,119 sq.m. of floor area in Changshu, including 13,889 sq.m. for manufacturing facilities under a lease effective from 1st June, 2011 to 31st May, 2012, 8,852 sq.m. for manufacturing facilities under a lease effective from 1st October, 2011 to 30th September, 2012, and 8,378 sq.m. for manufacturing facilities under a lease effective from 1st April, 2010 to 31st March, 2013.

 

Another factory is CSI Luoyang Manufacturing.  CSI Luoyang Manufacturing holds a land use rights certificate for approximately 35,345 sq.m. of land in Luoyang (Phase I), on which it has constructed a manufacturing facility for module manufacturing and an office building.  The floor area of all workshops and office buildings in Phase I is approximately 6,761 sq.m.  The property ownership certificate was granted in June 2008. In 2008, CSI Luoyang Manufacturing obtained the land use rights for approximately 79,685 sq.m. of adjacent land (Phase II), on which it has constructed wafer manufacturing facilities.  The floor area of Phase II is 30,071 sq.m.  It expects to receive the property ownership certificate upon passing the required inspection after the completion of construction.

 

The Group also has had other factories in China.

 

Over the past several quarters the Group has taken steps to become more vertically integrated at the cell to module production steps of the manufacturing value chain.  As of 31st December, 2014, it had:

 

·         3.0 GW of total annual solar module manufacturing capacity, 500 MW of which is located in Ontario, Canada with the balance located in China;

·         1.5 GW of total annual solar cell manufacturing capacity in China; and

·         260 MW of total annual ingot and wafer manufacturing capacity in China.

 

The Group is one of the world’s largest solar power companies.  It is a leading vertically integrated provider of solar power products and system solutions with operations in North America, South America, Europe, Africa, the Middle East, Australia and Asia.

 

In 2007 and 2008, the Group entered into a number of long-term supply agreements with several silicon and wafer suppliers in order to secure a stable supply of raw materials to meet our production requirements.  These suppliers included GCL-Poly Energy Holdings Limited, or GCL, Neo Solar Power Corp., or Neo Solar, Deutsche Solar AG, or Deutsche Solar, Jiangxi LDK Solar Hi-Tech Co., Ltd., or LDK, and a UMG-Si supplier.

 

The Group has a large number of competitors, including non-China-based competitors such as First Solar, Inc., or First Solar, and SunPower Corporation, or SunPower, and China-based competitors such as Yingli Green Energy Holding Company Limited, or Yingli, Trina Solar Limited, or Trina, JA Solar Co. Limited, or JA Solar, and JinkoSolar Holding Co. Limited, or Jinko.

 

In 2014, its major suppliers of silicon wafers include GCL, Konca Solar Cell., Ltd, or Konca, and Suzhou Dongtai Solar Energy Technology Co. Ltd., or Dongtai.  Its major suppliers of solar cells in 2014 include Topcell Solar International Co. Ltd, or Topcell, Neo Solar and Motech Industries, Inc., or Motech.

 

For the year ended 31st December, 2014, the Group’s total net revenues were US$2,960.6 million (2013: US$1,654.4 million), net income was US$243.9 million (2013: US$45.6 million).  Business improved substantially in FY 2014.

 

The increase was primarily due to an increase in revenue contribution from our total solutions business, combined with higher shipments from our solar module business from 1,736 MW in 2013 to 2,358 MW in 2014.

 

Revenues generated from its solar module business increased by US$461.8 million, or 39.1%, from US$1,181.7 million in 2013 to US$1,643.5 million in 2014.  The increase was primarily due to an increase of US$404.5 million attributed to the 35.9% increase of shipments of its solar modules.

 

Its total solar module shipments were 2,813 MW in 2014, an increase of 48.5% from 1,894 MW in 2013.  Shipments to non-European markets increased by 848.7 MW from 1,605.2 MW in 2013 to 2,453.9 MW in 2014, primarily to customers in the U.S. and Japan. Shipments to European markets increased by 69.7 MW from 289.0 MW in 2013 to 358.7 MW in 2014.

 

As of 31st December, 2014, the Group had 8,673 full-time employees, respectively.

 

As of 31st December, 2014, it had 3,451 employees at its facilities in Suzhou, 3,039 employees at its facilities in Changshu, 886 employees at its facilities in Luoyang, 74 employees at its facilities in Yancheng, and 1,223 employees based in its facilities and offices in Canada, Japan, Australia, Singapore, South Korea, Hong Kong, India, the Philippines, the United Arab Emirates, South Africa, the Americas and the EU (which includes Germany, Italy and France).

 

The subject is fully supported by the Group.  History in Hong Kong is over four years and six months.

 

On the whole, consider it good for normal business engagements.

 

 

REMARK

 

Brief personal profile of the principal director:-

Mr. Michael George POTTER is a Senior Vice President and Chief Financial Officer of the Group.  Mr. Michael G. Potter has served as a Board Director since September, 2007.  He was appointed Senior Vice President and Chief Financial Officer of Canadian Solar Inc. in July 2011, Mr. Potter has worked in finance, controlling and audit positions with a variety of multinational companies for over 20 years, serving most recently as Corporate Vice President and Chief Financial Officer of Lattice Semiconductor Corporation.  Before joining Lattice, Mr. Potter was Senior Vice President and Chief Financial Officer of NeoPhotonics Corporation and before that Senior Vice President and Chief Financial Officer of STATS ChipPAC Inc.  Before he joined STATSChipPAC, Mr. Potter held a variety of executive positions at Honeywell Inc., Mr. Potter is a Chartered Accountant and holds a Bachelor of Commerce degree from Concordia University, Canada and a Diploma of Public Accountancy from McGill university, Canada.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.55

UK Pound

1

Rs.99.17

Euro

1

Rs.73.08

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.