MIRA INFORM REPORT

Report No. :	504366
Report Date :	20.04.2018

IDENTIFICATION DETAILS

Name :	XINYI SOLAR (HONG KONG) LIMITED
Registered Office :	Unit 2109-2115, 21/F., Rykadan Capital Tower, 135 Hoi Bun Road, Kwun Tong, Kowloon
Country :	Hong Kong
Date of Incorporation :	25.01.2011
Com. Reg. No.:	53668108
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and wholesaler of all kinds of PV glass, PV power generation products
No. of Employees :	30

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	Regular
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Hong Kong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

HONG KONG - 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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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, which took effect in 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.

Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.

Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities. In 2017, Chief Executive Lam announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

Source : CIA

Company name and address

XINYI SOLAR (HONG KONG) LIMITED

ADDRESS: Unit 2109-2115, 21/F., Rykadan Capital Tower, 135 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong.

PHONE: 852-3919 2888

FAX: 852-3919 2813

MANAGEMENT

Managing Director: Mr. Lee Yau Ching

SUMMARY

Incorporated on: 25th January, 2011.

Organization: Private Limited Company.

Issued Share Capital: HK$200.00

Business Category: Importer, Exporter and Wholesaler.

Group Turnover: HK$9,527.0 million (Year ended 31-12-2017)

Employees: 30.

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Unit 2109-2115, 21/F., Rykadan Capital Tower, 135 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong.

Holding Company:-

Xinyi Solar (BVI) Ltd., British Virgin Islands.

Ultimate Holding Company:-

Xinyi Solar Holdings Ltd., Cayman Islands.

Assoicated Companies:-

Xinyi Solar Holdings Group of Companies

Cheer Wise Investments Ltd., Hong Kong.

Hongan Xinyi Renewable Energy Ltd., China.

Lu’an Xinyi Renewable Energy Ltd., China.

Nanping Xinyi Renewable Energy Ltd., China.

Polaron Solartech Corporation, Canada.

Tianjin Xinyi Renewable Energy Ltd., China.

Ultimate Luck Global Ltd., British Virgin Islands.

Wuhu Xinyi Renewable Energy Ltd., China.

Xinyi Energy Holdings Ltd., British Virgin Islands.

Xinyi PV Products (Anhui) Holdings Ltd., China.

Xinyi Renewable Energy (Bozhou) Ltd., China.

Xinyi Renewable Energy (Shouxian) Ltd., China.

Xinyi Solar (Fanchang) Ltd., China.

Xinyi Solar (Huainan) Ltd., China.

Xinyi Solar (Lu’an) Co. Ltd., China.

Xinyi Solar (Malaysia) Sdn. Bhd., Malaysia.

Xinyi Solar (Shouxian) Ltd., China.

Xinyi Solar (Suiping) Ltd., China.

Xinyi Solar (Tianjin) Ltd., China.

Xinyi Solar (Wangjiang) Ltd., China.

Xinyi Solar (Wuhu) Ltd., China.

Xinyi Solar (Wuwei) Ltd., China.

Xinyi Solar (Xiaochang) Ltd., China.

BUSINESS REGISTRATION NUMBER

53668108

COMPANY FILE NUMBER

1555954

MANAGEMENT

Managing Director: Mr. Lee Yau Ching

ISSUED SHARE CAPITAL

HK$200.00

SHAREHOLDERS

(As per registry dated 25-01-2018)

Name	No. of shares
Xinyi Solar (BVI) Ltd. Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands.	200 ===

DIRECTOR

(As per registry dated 25-01-2018)

Name (Nationality)	Address
LEE Yau Ching	Flat B, 7/F., Tower 2, The Austin, 8 Wui Cheung Road, Tsimshatsui, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 25-01-2018)

Name	Address
CHU Charn Fai	Unit 2109-2115, 21/F., Rykadan Capital Tower, 135 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong.

HISTORY

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

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of PV glass, PV power generation products.

Employees: 30.

Commodities Imported: China, other Asian countries, etc.

Markets: Other Asian countries, Europe, North America, Australia, etc.

Group Turnover: HK$1,967.5 million (Year ended 31-12-2013)

HK$2,410.0 million (Year ended 31-12-2014)

HK$4,750.4 million (Year ended 31-12-2015)

HK$6,007.1 million (Year ended 31-12-2016)

HK$9,527.0 million (Year ended 31-12-2017)

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Issued Share Capital: HK$200.00

Group profit attributable to equity holders:-

HK$ 303.8 million (Year ended 31-12-2013)

HK$ 493.0 million (Year ended 31-12-2014)

HK$1,205.6 million (Year ended 31-12-2015)

HK$1,985.6 million (Year ended 31-12-2016)

HK$2,322.0 million (Year ended 31-12-2017)

Group equity attributable to equity holders:-

HK$ 2,310.4 million (Year ended 31-12-2013)

HK$ 3,305.9 million (Year ended 31-12-2014)

HK$ 5,745.0 million (Year ended 31-12-2015)

HK$ 6,215.6 million (Year ended 31-12-2016)

HK$10,121.1 million (Year ended 31-12-2017)

Profit or Loss: Made small profits in past years.

Condition: Keeping in a satisfactory manner.

Facilities: Making rather active use of general banking facilities.

Payment: Regular.

Commercial Morality: Satisfactory.

Bankers:-

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

Hang Seng Bank Ltd., Hong Kong.

Bank of China (Hong Kong) Ltd., Hong Kong.

Standing: Normal.

GENERAL

Xinyi Solar (Hong Kong) Limited is a subsidiary company of Xinyi Solar (BVI) Ltd. which is a BVI-registered company. The ultimate holding company Xinyi Solar Holdings Ltd. [Xinyi Solar/Company/Group, when including associates] is a Cayman Islands-registered company. It is also a listed company in Hong Kong bearing Code No. 00968.

Xinyi Solar is one of the largest solar PV glass manufacturers in the world. Listed on the main board of the Hong Kong Stock Exchange in December 2013, Xinyi Solar is specialized in R&D, manufacturing, sales, after-sale service of solar PV glass and solar power station investment construction and operation. It provides solar PV glass products for the major domestic and international solar module manufacturers.

Xinyi Solar now owns two bases for solar PV glass production in Anhui Wuhu and Tianjin respectively. It has 3,900 tons of solar PV glass production lines in total. The major products include ultra-clear patterned glass (sheet glass and tempered glass), AR PV glass, back glass, ITO glass, etc. Xinyi Solar becomes the first one certified by The Energy Management System of Chinese Building Material Center in China's solar PV glass industry.

Xinyi Solar planned to increase two production lines with 1,000 Tons/day furnace in Wuhu base in the fourth quarter of 2016 and the first quarter of 2017 respectively.

Xinyi Solar is also the largest applicators of G-G module, and promote competitiveness of solar industrial and energy efficiency.

The Group has three segments:-

(1) Sales of solar glass;

(2) Solar farm and solar power generation;

(3) EPC service.

For the year ended 31st December, 2017, the Group achieved a consolidated revenue of HK$9,527.0 million, representing an increase of 58.6% compared with 2016 which was 6,007.1 million. Profit attributable to the equity holders of the Company increased by 17.4% to HK$2,332.0 million (2016: HK$1,985.6 million).

As at 31st December, 2017, the Group had about 3,493 full-time employees of whom 3,032 were based in Mainland China and 461 were based in Hong Kong, Malaysia and other countries.

The subject is fully supported by the Group.

On the whole, consider it good for normal credit requirements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.68
UK Pound	1	INR 93.98
Euro	1	INR 81.30
HKD	1	INR 8.45

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	SYL

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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