MIRA INFORM REPORT
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Report No. : |
346355 |
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Report Date : |
27.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG
ZHONGHUAN SUNTER PV TECHNOLOGY CO., LTD. |
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Registered Office : |
No. 488 Xinxing Road, Emerging Industrial Clusters, Cixi, Zhejiang,
Province, 315322 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
04.09.2008 |
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Com. Reg. No.: |
330282000068251 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in manufacturing and sales of solar photovoltaic
products. |
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No. of Employee : |
165 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. 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 2014 stood as the largest economy in the world, surpassing the US for the first time in modern history. Still, China's per capita income is below the world average.
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. In 2014 the People’s Bank of China (PBOC) doubled the daily trading band within which the RMB is permitted to fluctuate.
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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
name and address
ZHEJIANG ZHONGHUAN
SUNTER PV TECHNOLOGY CO., LTD.
NO. 488 XINXING ROAD, EMERGING INDUSTRIAL
CLUSTERS, CIXI, ZHEJIANG, PROVINCE, 315322 PR CHINA
TEL: 86 (0) 574-63777488 FAX: 86 (0) 574-63779999
EXECUTIVE
SUMMARY
INCORPORATION DATE :
SEP. 4, 2008
REGISTRATION NO. :
330282000068251
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
165
REGISTERED CAPITAL : CNY 41,800,000
BUSINESS LINE :
R&D, TRADING AND MANUFACTURING
TURNOVER :
CNY 158,977,265 (AS OF DECEMBER 31, 2014)
EQUITIES :
CNY 51,443,620 (AS OF DECEMBER 31, 2014)
PAYMENT :
NO COMPLAINTS
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY6.3473 = USD
Adopted abbreviations:
ANS - amount not stated NS - not stated SC - subject company (the company inquired by you)
NA - not available CNY - China Yuan Renminbi
SC was registered as a limited liabilities
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Sep. 4, 2008.
Company Status:
Limited liabilities co.
This form of
business in PR China is defined as a legal person. No more than fifty
shareholders contribute its registered capital jointly. Shareholders bear
limited liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form of
co. are as follows:
Upon the
establishment of the co., an investment certificate is issued to the each of
shareholders.
The board of
directors is comprised of three to thirteen members.
The minimum
registered capital for a co. is CNY 30,000.
Shareholders may
take their capital contributions in cash or by means of tangible assets or
intangible assets such as industrial property and non-patented technology.
Cash contributed
by all shareholders must account for at least 30% of the registered capital.
Existing
shareholders have pre-exemption right to purchase shares of the co. offered for
sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business scope includes research and development of
solar photovoltaic product, solar cells and modules; manufacture of solar cell
junction box, electronic components, wire and cable, automation equipment,
aluminum products, plastic products and mould; import and export of goods and
technology, excluding those limited or prohibited by the state.
SC is mainly engaged in manufacturing and sales of solar photovoltaic
products.
Mr. Shi Shuming is
legal representative, executive director and general manager of SC at present.
SC is known to
have 165 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 Cixi. Detailed premise
information is not available at present.
The design is professional and the content is well organized. At present
it is in English and Chinese versions.
Email: yjch@pvzh.com; pvzh@pvzh.com; wd@pvzh.com
For the past two years there is no record of litigation.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2009-8-12 |
Registered capital |
CNY 200,000 |
CNY 1,500,000 |
|
2011-12-15 |
Registered capital |
CNY 1,500,000 |
CNY 18,300,000 |
|
2011-12-26 |
Company name |
Cixi Zhonghuan Electronics Co., Ltd. |
Present one |
|
2012-3-7 |
Registered capital |
CNY 18,300,000 |
Present one |
|
2013-3-5 |
Shareholders and shareholding |
Zhou Lixia 10% Ding Ke
35% Shi Shuming 55% |
Zhou Lixia 10% Shi Shuming 40% Ding Ke 50% |
|
2013-3-12 |
Shareholders and shareholding |
Zhou Lixia 10% Shi Shuming 40% Ding Ke 50% |
Zhou Lixia 10% Wang
Qingqing 15% Ding Ke 35% Shi Shuming 40% |
Organization Code:
677686905
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shi Shuming 40
Wang Qingqing 15
Zhou Lixia 10
Ding Ke 35
l Legal
Representative, Executive Director and General Manager:
Mr. Shi Shuming, ID# 33022219690123xxxx,
born in 1969. He is currently responsible for the overall and daily management
of SC.
Working Experience(s):
At present Working in SC as legal representative, executive
director and general manager.
l
Supervisor:
Ding Ke
SC is mainly engaged in manufacturing and sales of solar photovoltaic
products.
SC’s products
mainly include: PV Junction Box, PV Connector and Cable.
SC sells its products in domestic market,
and to overseas market.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
Note: SC declined to release its major
suppliers and clients.
SC
is not known to have the subsidiary at present.
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.
SC’s bank details are not available at present.
Balance Sheet
|
Unit: CNY |
as
of Dec. 31, 2014 |
as
of Dec. 31, 2013 |
|
Cash & bank |
18,070,254 |
8,168,723 |
|
Short-term
investments |
/ |
/ |
|
Inventory |
2,240,569 |
6,756,884 |
|
Notes receivable
|
/ |
/ |
|
Dividends
receivable |
/ |
/ |
|
Accounts
receivable
|
25,078,875 |
17,393,232 |
|
Other receivable |
22,231,716 |
19,476,841 |
|
Advanced to
suppliers |
/ |
/ |
|
Subsidy
receivable |
/ |
/ |
|
A receivable tax
rebate of export |
/ |
/ |
|
Prepaid expenses |
/ |
/ |
|
Long-term debt
investment within one year |
/ |
/ |
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Other current
assets |
/ |
/ |
|
|
------------------ |
------------------ |
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Current assets |
76,004,779 |
67,056,451 |
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Fixed assets net
value |
11,883,696 |
5,089,633 |
|
Projects under
construction |
/ |
/ |
|
Long term
investment |
0 |
0 |
|
Total intangible
and other assets |
45,672,969 |
46,014,111 |
|
|
------------------ |
------------------ |
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Total assets |
184,141,521 |
133,857,764 |
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|
============= |
============= |
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Short loans |
/ |
/ |
|
Notes payable |
/ |
/ |
|
Accounts payable |
41,310,844 |
56,279,825 |
|
Accounts
advanced from customers |
/ |
/ |
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Accrued payroll |
/ |
/ |
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Welfare benefits
payable |
/ |
/ |
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Dividends
payable |
/ |
/ |
|
Interest payable |
/ |
/ |
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Taxes payable |
/ |
/ |
|
Other levies
payable |
/ |
/ |
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Other accounts
payable |
58,230,871 |
41,996 |
|
Accrued expenses |
/ |
/ |
|
Other current
liabilities |
/ |
/ |
|
|
------------------ |
------------------ |
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Current
liabilities |
132,697,901 |
89,263,377 |
|
Long term
liabilities |
0 |
0 |
|
Other
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
132,697,901 |
89,263,377 |
|
Equities |
51,443,620 |
44,594,387 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
184,141,521 |
133,857,764 |
|
|
============= |
============= |
Income Statement
Unit: CNY
|
|
as of Dec. 31,
2014 |
as of Dec. 31,
2013 |
|
Turnover |
158,977,265 |
40,137,571 |
|
Profit before
tax |
8,895,413 |
1,561,609 |
|
1,079,394 |
341,077 |
|
|
Profits |
7,816,019 |
1,220,532 |
Important Ratios
=============
|
|
as of Dec. 31,
2014 |
as of Dec. 31,
2013 |
|
*Current ratio |
0.57 |
0.75 |
|
*Quick ratio |
0.56 |
0.68 |
|
*Liabilities to assets |
0.72 |
0.67 |
|
*Net profit margin (%) |
4.92% |
3.04% |
|
*Return on total assets (%) |
4.24% |
0.91% |
|
*Inventory /Turnover ×365 |
6 days |
62 days |
|
*Accounts receivable/Turnover ×365 |
58 days |
159 days |
|
*Turnover/Total assets |
0.86 |
0.30 |
|
* Cost of goods sold/Turnover |
- |
- |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average in 2013 but fairly good in 2014.
l SC’s net profit
margin appears average in both years.
l SC’s return on
total assets is average in both years and it was rising in 2014.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears average in 2013 but
small in 2014.
l
The accounts receivable of SC appears fairly large
in 2013 but average in 2014.
l
SC’s turnover is in a poor level, comparing with
the size of its total assets in 2013 but it’s in a fair level in 2014.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable
SC is considered medium-sized in its line with fairly stable financial
conditions. Taking into consideration of SC’s general performance.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.96 |
|
|
1 |
Rs.99.55 |
|
Euro |
1 |
Rs.71.64 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
ASH |
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.