3decades

MIRA INFORM REPORT

Report No. :	485079
Report Date :	12.01.2018

IDENTIFICATION DETAILS

Name :	WUXI SUNTECH POWER CO., LTD.

Registered Office :	No. 9 & 16, Xinhua Road, New District, Wuxi, Jiangsu Province 214028 Pr

Country :	China

Financials (as on) :	31.12.2016

Date of Incorporation :	22.01.2001

Com. Reg. No.:	9132021372655423XN

Legal Form :	One-Person Limited Liabilities Company

Line of Business :	Subject 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.

No. of Employees :	1,800

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+

Low Risk

Business dealings permissible with low 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

(30.06.2017)

Current Rating

(30.09.2017)

China

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

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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state-support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.

After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, 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 liberalization. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi (RMB) after the currency was accepted as part of the IMF’s special drawing rights basket. After engaging in one-way, large-scale intervention to resist appreciation of the RMB for a decade, China’s 2016 intervention in foreign exchange markets has sought to prevent a rapid RMB depreciation that would have negative consequences for the United States, China, and the global economy.

China’s economic growth has slowed since 2011. The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) servicing its high corporate debt burdens to maintain financial stability; (c) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (d) dampening speculative investment in the real estate sector; (e) reducing industrial overcapacity; and (f) raising productivity growth rates through the more efficient allocation of capital. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.

The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. Under President XI Jinping, Beijing has signaled its understanding that China's long-term economic health depends on giving the market a more decisive role in allocating resources, but has moved slowly on market-oriented reforms because of potential negative consequences for stability and short-term economic growth. He has also increased state-control over key sectors and Party control over state-owned enterprises. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time.

Source : CIA

Company name & address

COMPANY NAME	WUXI SUNTECH POWER CO., LTD.
CURRENT ADDRESS/ REGISTERED ADDRESS	NO. 9 & 16, XINHUA ROAD, NEW DISTRICT, WUXI, JIANGSU PROVINCE 214028 PR CHINA
TEL. NO.	86 (0) 510-85318888/85317890
FAX NO.	86 (0) 510-85343049/85317372

EXECUTIVE SUMMARY

Date of Registration : JANUARY 22, 2001

REGISTRATION NO. : 9132021372655423XN

LEGAL FORM : ONE-PERSON LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : ZHANG FUBO (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 4,607,222,515.9

staff : 1,800

BUSINESS CATEGORY : manufacturing & trading

Revenue : CNY 4,469,500,000 (AS OF DEC. 31, 2016)

EQUITIES : CNY 5,048,330,000 (AS OF DEC. 31, 2016)

WEBSITE : www.suntech-power.com

E-MAIL : sales@suntech-power.com

PAYMENT : Regular

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : average

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 one-person limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under unified social credit code: 9132021372655423XN.

SC’s Import and Export Enterprise Code: 320072655423X

SC’s registered capital: CNY 4,607,222,515.9

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
2008-11	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
2014-3-11	Shareholder (s)	Olar Energy Power System Co., Ltd. (B.V.I.) 100%	Shunfeng Photovoltaic Investment (China) Co., Ltd. 100%
2014-6-11	Registered Capital	usd 299,200,000	USD 525,000,000
2014-12-24	Registered Capital	USD 525,000,000	USD 703,860,000
2015-12-24	Registered Capital	USD 703,860,000	CNY 4,607,222,515.9
2015-12-24	Legal Form	Wholly Foreign-Owned Enterprise	One-Person Limited Liabilities Company
2017-6-27	Legal Representative	Shi Jianmin	Zhang Fubo

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)

% of Shareholding

Jiangsu Shunfeng Photovoltaic Technology Co., Ltd.

100

SC’s Chief Executives:-

Position	Name
Legal Representative and Chairman	Zhang Fubo
General Manager	He Shuangquan
Director	Mo Jicai
	Liu Bin
	He Shuangquan
	Zhang Shengqiao
Supervisor	Xu Yingfeng

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Jiangsu Shunfeng Photovoltaic Technology Co., Ltd. 100

-----------------------------------

Date of Registration: October 10, 2005

Unified Social Credit Code: 913204127796618561

Legal Form: Wholly Foreign-Owned Enterprise

Chief Executive: Zhang Fubo

Registered Capital: CNY 4,835,512,127.38

MANAGEMENT

Zhang Fubo, Legal Representative and Chairman

---------------------------------------------------------------------------

Gender: M

Nationality: China

Age: 56

ID# 310101196206274413

Qualification: University

Working experience (s):

At present, working in SC as legal representative and chairman, also working in Jiangsu Shunfeng Photovoltaic Technology Co., Ltd. as legal representative

He Shuangquan, General Manager

--------------------------------------------------------

Gender: M

Nationality: China

Qualification: University

Working experience (s):

At present, working in SC as general manager

Director

-----------

Mo Jicai

Liu Bin

He Shuangquan

Zhang Shengqiao

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:

=============

Suntech America Inc.

Anchor Electricals Pvt. Ltd.

Coexito S.A.

R P Suman And Co.

Staff & Office:

--------------------------

SC is known to have approx. 1,800 staff at present.

SC owns an area as its operating office and factory, but the detailed information is unknown.

RELATED COMPANY

SC is known to have the following subsidiaries at present,

Luoyang Suntech Power Co., Ltd.

Shenzhen Suntech Power Co., Ltd.

Wuxi Suntech Yijia New Energy Co., Ltd.

Ordos Rende New Energy Development Co., Ltd.

Etc.

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:

Huaxia Bank Wuxi New District Sub-branch

AC#: 12556000000496582

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2015	As of Dec. 31, 2016
Cash	1,686,199	699,734
Short-term investment	0	0
Notes receivable	3,050	132
Accounts receivable	963,546	1,284,846
Advances to suppliers	510,928	1,001,627
Other receivable	397,264	847,591
Inventory	449,565	307,803
Deferred expenses	0	0
Other current assets	40,663	55,887
	------------------	------------------
Current assets	4,051,215	4,197,620
Long-term investment	1,480,056	1,481,020
Fixed assets	1,912,888	1,626,737
Construction in progress	63,216	112,566
Intangible assets	9,303	53,223
Long-term prepaid expenses	5,024	12,844
Deferred income tax assets	0	7,597
Other non-current assets	92,868	0
	------------------	------------------
Total assets	7,614,570	7,491,607
	=============	=============
Short-term loans	256,471	162,334
Trading financial liabilities	0	0
Notes payable	476,878	623,710
Accounts payable	479,656	457,594
Wages payable	44,138	47,184
Taxes payable	104	-15,163
Advances from clients	355,866	271,900
Interest payable	443	211
Other payable	544,387	432,013
Accrued expenses	0	0
Other current liabilities	168,723	94,419
	------------------	------------------
Current liabilities	2,326,666	2,074,202
Non-current liabilities	440,515	369,075
	------------------	------------------
Total liabilities	2,767,181	2,443,277
Equities	4,847,389	5,048,330
	------------------	------------------
Total liabilities & equities	7,614,570	7,491,607
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2015	As of Dec. 31, 2016
Revenue	4,058,566	4,469,500
Cost of sales	3,446,385	3,930,965
Taxes and surcharges	30,481	20,601
Sales expense	221,821	249,041
Management expense	-90,361	134,430
Finance expense	-783	-19,439
Non-business income	6,867	15,343
Non-business expense	9,438	29,425
Profit before tax	450,427	160,077
Less: profit tax	0	0
Profits	450,427	160,077

Important Ratios

=============

	As of Dec. 31, 2015	As of Dec. 31, 2016
*Current ratio	1.74	2.02
*Quick ratio	1.55	1.88
*Liabilities to assets	0.36	0.33
*Net profit margin (%)	11.10	3.58
*Return on total assets (%)	5.92	2.14
*Inventory / Revenue ×365	41 days	26 days
*Accounts receivable/ Revenue ×365	87 days	105 days
* Revenue/Total assets	0.53	0.60
* Cost of sales / Revenue	0.85	0.88

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

The revenue of SC appears good in its line.

SC’s net profit margin is average

SC’s return on total assets is average.

SC’s cost of goods sold is average, comparing with its revenue.

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a fairly good level in 2016.

SC’s quick ratio is maintained in a fairly good level in 2016.

The inventory of SC is maintained in an average level.

The accounts receivable of SC appears large.

The short-term loans of SC appear average.

SC’s revenue is in a fair level, comparing with the size of its total assets.

LEVERAGE: FAIRLY GOOD

The debt ratio of SC is low.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Stable.

CONCLUSIONS

SC is considered large-sized in its line with stable financial conditions. The large amount of accounts receivable may be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.74
UK Pound	1	INR 86.01
Euro	1	INR 76.14
CNY	1	INR 9.82

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

INFORMATION DETAILS

Analysis Done by :	VIV

Report Prepared by :	TPT

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.