MIRA INFORM REPORT

Report Date :

12.01.2007

IDENTIFICATION DETAILS

Name :	TONG YUAN PACKAGING PRODUCTION JOINT VENTURE COMPANY
Registered Office :	No.6, Road 9, Song Than 1 IP, Di an Town, Di An District, Binh Duong Province
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1996
Legal Form :	Joint Venture Company
Line of Business :	Producing and designing plastic packaging materials & printing.

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 :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	TONG YUAN PACKAGING PRODUCTION JOINT VENTURE COMPANY
Vietnamese name	CONG TY LIEN DOANH SAN XUAT BAO BI TONG YUAN
Trade Name	TONG YUAN PACKAGING CO LTD
Type of Business	Joint venture company
Foundation	1996
Business Registration No.	1758/GP-UB
Date of Issuance	November 25^th 1996
Place of Issuance	Management Board of Song Than 1 IP of Binh Duong Province
Current Investment capital	8,000,000 USD
Former Investment Capital	5,000,000 USD
Legal capital	3,000,000 USD
Tax Code	3700229841
Duration	40 years
Total Employees	170 employees
Qualification	NORMAL
Note: The subject has raised the investment capital on May 17^th 2005, the amount of increasing up to 3,000,000 USD.
ADDRESS
Head Office
Address	No.6, Road 9, Song Than 1 IP, Di an Town, Di An District, Binh Duong Province.
Country	Vietnam
Tel	(84-650) 742250
Fax	(84-650) 742238
Email	tongyuanvn@hcm.vnn.vn
Transaction office
Address	411/50 Le Dai Hanh St, District 11, Hochiminh city
Country	Vietnam
Tel	(84-8) 8587077
Fax	(84-8) 9628485
Note: The transaction office is also the registered address of Dong Nguyen Packaging Company, Vietnamese partner of Tong Yuan Packaging Manufacture Co Ltd.
DIRECTORS
1. NAME	Mr. LIN KE CHUNG
Position	Director
Resident	Binh Duong Province
Nationality	Taiwanese
2. NAME	Mr. DU HUY MINH
Position	Sale Executive
Resident	Hochiminh city
Nationality	Vietnamese
Cell phone	+8493 968 868
3. NAME	Mr. HUYNH CAM HUNG
Position	Sale Manager
Resident	Binh Duong Province
Nationality	Vietnamese
4. NAME	Mr. TON THAT ANH DUNG
Position	Import-export Officer
Resident	Hochiminh city
Nationality	Vietnamese
Email	dungton@hcm.fpt.vn
BUSINESS NATURE AND ACTIVITIES
The subject is producing and designing plastic packaging materials & printing. Releasable flexible stand pouch, printed bags for CD title, PP woven jumbo bags.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials from China, Thailand, Singapore, Japan, and uses a few in Vietnam
EXPORT: It exports to United State Singapore, United Kingdom, Australia, Czech Republic, Hungary, Russia, Poland, Ukraine, Cambodia, Malaysia, Slovakia, Taiwan.
BANKERS
1. INTERNATIONAL COMMERCIAL BANK OF CHINA
Address	No. 5B Ton Duc Thang Str, Ben Nghe Ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8225697
Fax	(84-8) 8225698
Swift	811361VNVT
Account No.	010200000327
2. CHINA TRUST COMMERCIAL BANK
Address	No. 37 Ton Duc Thanh Str, Ben Nghe Ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 9103890
Fax	(84-8) 9103891
Telex	811208CTCBVNVT
Swift	TCCBVNVX
3. INDOVINA BANK (IVB)
Address	No. 36 Ton That Dam Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8224995 – 8230130
Fax	(84-8) 8230131
Swift	IABBVNVX

SHAREHOLDERS
The subject is a joint venture company. Following are subject’s investors:
Foreign partner
Company Name		TONG YUAN PLASTIC CO LTD
Address		380 Tung Ying Road, East District, Tai Chung, Taiwan
Tel		886-4-22117212
Fax		886-4-22022443
Share		70%
Vietnamese partner
Company Name		DONG NGUYEN PACKAGING MANUFACTURE LIMITED COMPANY
Address		441/50 Le Dai Hanh St, District 11, Hochiminh city
Country		Vietnam
Tel		(84-8) 8587077
Fax		(84-8) 9628485
Registered capital		10,650,000,000 VND
Contact person		Ms. TRAN LE NGUYEN
Share		30%
Note: This address (411/50 Le Dai Hanh St, Dist 11, Hochiminh city) is also the address of transaction office of Tong Yuan Packaging Co Ltd.
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		FAIRLY GOOD
Liquidity		QUITE PROMPT
Previous Payments		FAIRLY GOOD
Payment status		FAIRLY GOOD
Past Financial Situation		NORMAL
Current Financial Situation		NORMAL
Litigation Data		NO RECORD
Bankruptcy		NO RECORD
Public opinion		NORMAL
Payment Methods		L/C, DA TERM OR VIA ITS BANKS
Sale method		DIRECTLY TO CLIENTS
FINANCIAL DATA
BALANCE SHEET
Unit: 01 VND
Balance sheet date			31/12/2005	31/12/2004
Number of weeks			52	52
ASSETS
A -	CURRENT ASSETS		84,246,958,012	69,227,565,570
I.	Cash and cash equivalents		5,822,705,683	2,110,382,010
1.	Cash		5,822,705,683	2,110,382,010
2.	Cash equivalents		0	0
II.	Short-term investments		0	0
1.	Short-term investments		0	0
2.	Provisions for short-term investment of short- term investments in securities		0	0
III.	Accounts receivable		41,482,673,372	30,621,476,071
1.	Receivable from customers		40,933,368,329	29,721,524,972
2.	Repayments to suppliers		0	637,795,274
3.	Inter- company receivable		0	0
4.	Receivable according to the process of construction contracts		0	0
5.	Other receivable		549,305,043	262,155,825
6.	Provisions for bad debts		0	0
IV.	Inventories		36,310,792,719	35,928,808,228
1.	Inventories		36,310,792,719	35,928,808,228
2.	Provisions for devaluation of inventories		0	0
V.	Other current assets		630,786,238	566,899,261
1.	Short-term repaid expenses		0	0
2.	Taxes receivable		0	0
3.	Other current assets		630,786,238	566,899,261
B -	LONG TERM ASSETS		52,698,226,293	40,046,648,553
I.	Long term accounts receivable		0	0
1.	Long term accounts receivable from customers		0	0
2.	Long term inter- company receivable		0	0
3.	Other long term receivable		0	0
4.	Provisions for bad debts		0	0
II.	Fixed assets		48,722,634,232	34,503,168,553
1.	Tangible assets		44,027,938,881	32,165,094,789
	Historical costs		78,222,402,027	62,587,225,581
	Accumulated depreciation		-34,194,463,146	-30,422,130,792
2.	Financial leasehold assets		0	0
	Historical costs		0	0
	Accumulated depreciation		0	0
3.	In-tangible assets		2,265,762,196	2,338,073,764
	Historical costs		2,901,204,200	2,901,204,200
	Accumulated depreciation		-635,442,004	-563,130,436
4.	Construction in progress		2,428,933,155	0
III.	Investment property		0	0
	History costs		0	0
	Accumulated depreciation		0	0
IV.	Long term investments		748,000,000	11,000,000
1.	Investments in affiliates		0	0
2.	Investments in business concerns and joint ventures		0	0
3.	Other long term investments		748,000,000	11,000,000
4.	Provisions for devaluation of investments in securities		0	0
V.	Other long term assets		3,227,592,061	5,532,480,000
1.	Long term repaid expenses		3,227,592,061	5,532,480,000
2.	Deferred income tax		0	0
3.	Other long term assets		0	0
	TOTAL ASSETS		136,945,184,305	109,274,214,123
LIABILITIES
A -	LIABILITIES		60,739,787,855	61,888,449,918
I.	Short term liabilities		46,534,347,855	54,898,761,596
1.	Short term debts and loans		14,103,864,280	10,568,623,764
2.	Payable to suppliers		21,026,230,732	15,163,118,946
3.	Advances from customers		205,278,258	36,993,250
4.	Taxes and other obligations to the State Budget		1,481,387,606	1,594,987,251
5.	Payable to employees		721,672,250	539,945,800
6.	Accrued expenses		0	0
7.	Inter- company payable		0	0
8.	Payable according to the progress of construction contracts		0	0
9.	Other payables		8,995,914,729	26,995,092,585
II.	Long term liabilities		14,205,440,000	6,989,688,322
1.	Long term account payable to suppliers		0	0
2.	Long term inter- company payable		0	0
3.	Other long term payable		0	0
4.	Long term debts and loans		14,205,440,000	6,989,688,322
5.	Deferred income tax		0	0
B -	OWNER’S EQUITY		76,205,396,450	47,385,764,205
I.	Owner’s equity		76,205,396,450	47,385,764,205
1.	Capital		36,042,813,998	36,042,813,998
2.	Share premiums		0	0
3.	Treasury stocks		0	0
4.	Differences on asset re-valuation		0	0
5.	Foreign exchange differences		0	0
6.	Business promotion fund		-119,035,000	0
7.	Financial reserved fund		0	0
8.	Other funds		2,061,356,463	1,550,580,203
9.	Retained earnings		38,220,260,989	9,792,370,004
II.	Other sources and funds		0	0
1.	Bonus and welfare funds		0	0
2.	Sources of expenditure		0	0
3.	Funds to form fixed assets		0	0
	TOTAL LIABLITIES AND OWNER’S EQUITY		136,945,184,305	109,274,214,123
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description		F/Y 2005	F/Y 2004
1.	Sales		189,055,869,895	156,619,128,497
2.	Deductions		443,131,475	241,717,809
3.	Net sales		188,612,738,420	156,377,410,688
4.	Costs of goods sold		162,145,817,041	136,900,859,611
5.	Gross profit		26,466,921,379	19,476,551,077
6.	Financial income		531,871,110	580,244,593
7.	Financial expenses		1,914,245,768	1,834,335,740
	- In which : Loan interest expenses		907,143,658	823,969,690
8.	Selling expenses		3,312,335,429	3,048,220,778
9.	Administrative overheads		4,155,394,872	3,598,431,410
10.	Net operating profit		17,616,816,420	11,575,807,742
11.	Other income		519,779,263	341,980,491
12.	Other expenses		316,687,032	570,023,774
13.	Other profits		203,092,231	-228,043,283
14.	Profit (loss) before tax		17,819,908,651	11,347,764,459
15.	Income tax		1,336,493,034	1,702,164,669
16.	Profit (loss) after tax		16,483,415,617	9,645,599,790
FINANCIAL FACTORS
Description			FY 2005		FY 2004
Current Liquidity Ratio			1.81		1.26
Quick Liquidity Ratio			1.03		0.61
Inventory Circle			4.49		3.81
Average Receive Period			80.28		71.47
Utilizing Asset Performance			1.38		1.43
Liability / Total Asset (%)			44.35		56.64
Liability / Owner's Equity (%)			79.71		130.61
Income Before Tax / Total Asset (%) ROA			13.01		10.38
Income Before Tax / Owner's Equity (%) ROE			23.38		23.95
Income Before Tax / Total Revenue (%) NPM			9.43		7.25
Gross Profit / Total Revenue (%) GPM			14.00		12.44
INTERPRETATION ON THE SCORES
Tong Yuan Packaging Co Ltd is a joint venture company which was established in 1996. It is a co-operation between the two companies, Tong Yuan Plastic Co Ltd (Taiwan) and Dong Nguyen Packaging Manufacture Co Ltd (Vietnam). The Subject specializes in manufacturing of POPP packaging, PET, PA, LLPE, food package, aluminum package, aseptic package… The subject is now business with foodstuff corporation and in domestic market like A-One, Kinh Do Bakery, Vifon, …and few of pharmaceutical companies. Rate of export products in 2005 was 70%, its oversea market is focus on Europe-Britain, France, Germany and some other countries such as Hungary, Russia, Poland, Czech Republic, Singapore, Thailand. Tong Yuan’s head office was located at Song Than 1 Industrial Park in Binh Duong province and a transaction office at 411/50 Le Dai Hanh St, District 11. On May 17^th 2005 the subject has increased its investment capital up to 8,000,000 USD to bolster its customers’ confidence. With current investment capital, the subject has more chance to widen the business activities in inland and compete with other enterprises. In 2003, the subject was honor to be given the certificate ISO 9001:2000. Following the financial data, in two years 2005-2004, all the financial factors of the subject were fairly good, the ROA & ROE index was no complain ever. Considering from the bankers’ point of view, the subject’s payment for long term or short term loan was moderately impression, Liability/ Total Asset was good at the rate 44.35% in 2005 and 56.64% in 2004. In general, all the factors involving financial were fairly good, but the others factors were not highly in rank because the subject has affected by the competition in domestic market. The management capability and organization of the subject is facing with some problems. Fact that, the subject has some direct competitors, like Golden Tree Plastic Limited is quite strong in this field which has just established in 2005, Taiwanese company too. However, the subject still has fixed advantages with a stable market share and traditional clients in inland and oversea for years. So there is no caution needed for any transaction with client at least for couple of years, if it carries out more suitable strategies in Vietnam such as contribute new factory and hire employees to increase the capacity at all.
Credit Inquiry: 150,000 USD

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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